United Arab Emirates, Essay Example

The concept of “natural” and “acquired” advantages allow the economist to distinguish between the advantages of a country that are endemic to the country itself and the advantages that are gained over time. A comparison of countries can help clarify these concepts. For example, consider Japan and Dubai. Dubai has become wealthy in the last twenty years by seizing on its natural advantage of having vast oil reserves. (IBP, 2014, p. 93) Carbon-based energy dependence of the world market has given Dubai a sizable advantage based on the geological chance that oil exists under its lands. Japan, in contrast, is often noted to be lacking in natural resources. (Kotabe & Wheiler, 1996, p. 14) The island county is not particular rich in minerals, for example. (Kotabe & Wheiler, 1996, p. 14)  However, a natural advantage of Japan is at the same time its access to the sea, which allows it to be a competitive exporter, for example, in the domain of seafood. (Kotabe & Wheiler, 1996, p. 65)

The lack of natural advantages at the same time explains Japan’s reliance on acquired advantages. For example, Japan has one of the largest automobile industries in the world. (Kotabe & Wheiler, 1996, p. xi) This is the result of Japanese business initiative, strategy and policy: it is an acquired advantage because it could have occurred anywhere in the world and is unrestricted by natural resources. Dubai, in contrast, has used its natural resources to become a cosmopolitan city, featuring many landmarks, such as the world’s tallest building to the Dubai World Cup Carnival horse racing festival. (IBP, 2014, p. 31) Dubai has marketed itself as an elite tourist destination (IBP, 2014, p. 30) : to the extent that Dubai has emerged on the map, this is an example of its acquired advantage.

Both countries, however, share a similarity in that they have merged modernity with tradition. Both states, for example, have monarchical figures at their head. (IBP 2014, p. 31) (Kotabe & Wheiler, 1996, p. xii) At the same time, both states have embraced technology, as evidenced in Japan’s powerful technology industry and in Dubai’s cutting-edge architecture. Japan, however, has moved towards a Western model in the political sphere, with a parliamentary democracy, while Dubai has not done so. (Kotabe & Wheiler, 1996, p. 182) (IBP, 2014, p. 31) Both countries are culturally informed by religion, in the case of Japan Shinto and Buddhism and in Dubai, Islam. (Kotabe & Wheiler, 1996, p. 182) (IBP, 2014, p. 12) Yet tradition has not limited both countries embracing of the future, although Japan is clearly more modern than Dubai in the sense that Islamic religious values are more dominant in the latter society.

References

IBP, Inc. (2014). United Arab Emirates: How to Invest, Start and Run Profitable Business in the UAE. Washington, DC: IBP.

Kotabe, M. & Wheiler, K.W. (1996). Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms. Westport, CT: Greenwood.