Workers rights in the Gulf countries

Today in the Gulf region especially in UAE and Qatar there is a tendency to follow advanced countries as fast as they can. Qatar for example is a small country with less than 600,000 population and they are the largest gas production country in the world. Now Qatar is looking forward to have a strong economy and use all the potential resources they can from the entire world, Qatar hire the best expertise and contract with the biggest companies to work in their projects. But after all do they want to be recognized as a country that has no conduct of ethics for foreign workers, absolutely not so they have to give more attention to that. As we see a nonmarket issue could affect the business performance and that exactly what Qatar need to focus on. Indian unskilled workers usually come to Qatar because they are a cheap labor and accept the least amount, but these workers in the whole Gulf region are not treated well because they accept the least so they well accept anything even it might be unethical. Indian government should look after its citizen more carefully because here they live in inhuman conditions. We saw a month ago how employees stop working in a large project in Dubai because they had not receive their salaries for months. How can this human being live without their diminutive payments? I think finally Indian government start looking after its people even they are not in India, it was late but it is better than nothing. The Indian government has to look more about agents in India that give these workers visas to come here to work in a different job that they explain to these workers. A worker pays more than 40.000 Rs to come here but they get something completely different, not the same salary, food, healthcare or the living apartments. UAE and Qatar officials also have to solve these problems before it become much harder to resolve.

Oil price, why too high?

In every market, product’s price is determine by the demand and supply relation, if the demand exceeds the supply price go up and vise versa. The most recent main question in the global economy is how far oil price will go? Now one barrel cost 75$ in the international market but why is that happening although production countries provide as possible they can the necessary production amount. All people think that oil counties have to produce more, but that is not the issue. Let’s take UAE as example, when a person wants to fill Toyota Corolla tank he has to pay 70DH, which is more than 25$. This is unrealistic because UAE one of the largest country in OPEC and the supply for oil has to be high, but the main problem for UAE as many countries is that there are not enough refineries to produce the final product for the consumers. Countries think about how to get oil from land and they ignore how they will use it! USA also need to have more than ten refineries to follow the demand and they have to start working in these refineries more than a decade ago, but to shift the pubic opinion from these main problem US government with other countries said that wars and conflicts in Middle East specially in Iraq is the main reason for this price increase and they overlook that Iraq is not working part of OPEC now (do not produce enough level). Petroleum technicians and experts have many reasons for the oil price increase but what policies want us to know is much different, so we need to know the real problem before judging on countries which are not responsible for our problems.

Dubai expansion: Al Maya

Over the last 10-15 years Dubai economy expand in a very high rate. Opportunities for all kinds of business raise with the right facilities those Dubai government offers which keep the foreign capital circulated in the economy. As mentioned in Al Maya Group Plans Expansion, Al Maya company as other companies in Dubai try to take the chance to grow rapidly, so they took a famous world wide model which is Tesco and work to be a chain model like them. With the necessary money coming from many foreign investors the need to have high quick return is essential for all of these investors in Dubai. Dubai strategy is clear; look for the best projects around the world and apply is in Dubai. The idea is whatever problems that might occurred money will solve it; money will get the best expertise and equipments which is going to work out any difficulty. For example, Dubai government noticed that when Japan began their economic development they invested in the American real state heavily. So Dubai decided to enter the international –especially the American- ports management market, the idea is the same but applied by different application. Many financial experts said that because this growth is unusual in the high expanding rate and Dubai is also is looking to be successful as soon as they can, Dubai might miss many important characteristic that is not clear now. Being socially responsible is the most important one, when a worker came from long distance and they received less than $150 a month and living very bad conditions, that is obviously unethical and those are not going to be quite for long time and what happened in Burj Dubai is an apparent example of that.

Issues around the world

In Congo children work most of the day looking for gold for the militias which use it as the major source for supplying the civil war. Who is responsibility is that? Who is buying this blooded gold for his/her accessories? Should the United Nation involve in this issue to protect these people from the militia’s manipulation. Countries and most civil society groups say that this issue is a local which must be solved by the local Congo government and the country’s leaders. From Baron’s perspective what is missing from the four Is? Of course there is an issue, enough information but how institutions and interest relate is the weakest link for solving this issue. Why most people around the world are not interested in helping African countries? Because they do not have what other people need like the oil in the Middle East. So there is a lack of interest from people around the world. The issue in Congo did not attract the attention for human rights organization and if it did for small part of them most of the organization act in order to show the world that they do not miss any ethical issue in the world. I think that there is no ethical responsibility code which directs corporation, civil society groups and even government to act in certain matter for the interest of poor people in the world who do not have any choice to fight because they will lose their life as in the Congo. Profit corporation do not act until the issue become threat to its image, for example Disney did not check the workers condition in China until it turn out to be a known story to its customers. They act as a reactive not a proactive which should be especially for the ethical issues.

U.S ports conflict

When Dubai government started to consider buying American and British ports, their main concern was in relation to get the permission from both governments authorities. Many British argued regarding the social and political issues when they decided to sell their ports to a company owned by Dubai government. The debate in Britain gets in a smooth process and then received the complete agreement from the different social and political organizations after the government arrangement. On the other hand, in the United States the government policy for the new entrants affect the process speed of finishing the deal of buying 6 harbors. It is clear that Dubai government was new entrant for the ports operation industry in the U.S but the government policy is shaped by many factors not just the White House as many think in the Middle East because people in that region live in authoritarian regimes. After getting the U.S administration agreement, Dubai government seemed to be sure that they finish the deal successfully. Meanwhile Senator Hillary Clinton refuse her husband advise and began a campaign in the Congress to discontinue the deal. She thinks that operating U.S ports by a foreign company might affect the United States national security. Although the United States sea guards will have the full responsibilities about protecting the U.S boards and Dubai company will be responsible just for the financial operation of the 6 harbors Sen. Clinton refuse to accept that a U.S port would be in others hand. It might be just a political position that might help Mrs. Clinton for her plan to run in the presidential election as many are saying. This conflict between Dubai government and the authorities in the U.S arise an important issue about how significant is the studying of government policy and the process of the decision making in any country a company is willing to enter its market. The studying saves time, effort and money.

Customer Power

Many people think that giant corporations are really stolen from their customers. Organizations like Microsoft, Starbucks and Wal-Mart for these kinds of people earn their profits directly from its customer’s pocket in a greedy way. In the article Selfishness Has Its Value to the Economy, Wal-Mart is not in New York market as it is in China; New Yorkers do not accept the idea that a far-off company can control New York retail market. Customer’s bargaining power noticeably can shape New York retail market and that might be exceptionally beneficial for New York’s marketplace, because this form of control will let to have enhanced competitive market. Customers in New York are afraid when Wal-Mart enter the retail market as it want to be could control the whole retailing market because of its financial and technological power. The idea of ethical economy transactions is favorable for the article’s writer Peter Brown, he gave an example when Russians refuse to use the shortage in Moscow for apples, and they did not sell apples as much as they can to get the highest profit possible for them, according to them that were unethical. On the other hand, there are many businessmen who say that is what happened in Russia reach the best interest for the Russian’s customers, I think not because the apple’s price were in the highest margin and people could not afford to buy an apple in Moscow, where apples are cheap in other parts of Russia. The same issue for Wal-Mart in New York, the question was does keeping Wal-Mart out of New York retail market is the best choice for the coalition of labor, civil rights and community groups? Extensive debate about this subject could be raised, but it is good to have customers who are able to control their market like in New York.

Effect of Danish Boycott patchy case

In the article Effect of Danish Boycott patchy, we can notice many aspects from what we have already learn especially from Porter Five forces. First it is clear that all Saudi outlets that boycott the Danish products go along with the bargaining power of the customers. Few outlet in Bahrain also boycott the Danish products even thought it do not sell any Danish foodstuffs. They want to go along in the wave, being part of emotion movement could be very effective in the company reputation. People in the Gulf region could be unpredictable so the Relationship Dynamic between the producer and the customers are also shaped by how the bargaining power is being unify, if it is a public issue with large publicity producer could get hurt if they did not go along with it. Moreover, the Danish producer issue raises the Government Policy concern to the Danish manufactures. Is the right of speech for the Danish media could hurt the Danish producer? What should the government do if the two sector- foodstuffs producer and media – had a conflict about what is the best for Denmark people? Danish Prime Minister refuses to apologize clearly for Muslims because what had been published in Danish newspaper. Some western resources mentioned that Danish foodstuffs manufactures are trying to settle that issue by influencing the government decision to solve the problem with the Islamic countries as soon as possible even it might hurt the image of free speech in Denmark. According to new statistic one Danish company lose 1.5$ million each day from this boycott. Now the problem is going to be bigger and the Danish government refuse to solve it with the media, so the biggest loser in that case is the Danish companies which sell its product in the Arab countries.