1.4 Jebel Ali Flashcards
compulsory case study
facts about Jebel Ali
- the first big “Free Zone’ in Middle East
- world’s largest Free Economic Zone
- has it’s own judicial system
- has 1,225 companies that have 14-18% growth per year
- $1bn of new development planned
what is the GCC?
Gulf Cooperation Council is a trade bloc in the ME
What is the Bacharian?
a nation containing more than 30 islands in the Arabian Gulf
How come Dubai can afford to not charge taxes?
generate so much income from oil
How is Jebel Ali attracting new globalisation?
1) attitude change
2) cumulative causation
3) governments or trade blocs
How did Jebel Ali change their attitudes?
became outward facing eg UAE embraced the GCC and built infrastructure such as Jebel Ali Port which attracts FDI
What is Cumulative causation?
companies start importing raw materials and exporting goods
examples of cumulative causation?
TNC’s set up branch factories eg US Navy 5th Fleet which creates employment and wealth from taxes and income for spending which allows supply chains to grow eg Imdaad and also facilitates transfer of technology eg Ethihad Rail
How do Governments attract globalisation?
creating special economic zones eg Jebel Ali and provide innovation, investment and political willpower
How do Trade Blocs attract globalisation?
provide cheap raw materials/ cheap market
Possible problems of attracting globalisation?
- Economic globalisation can go in hand with cultural globalisation
- glocalisation can also take place – creating good will with local people.
- governments can protect local culture (E.g. Emirati citizenship)
glocalisation
changing to fit target groups
what are the three M’s?
Means - flows of people, good and money
Motive - profit, control costs, maximise sales
Mobility - transport, communications, ‘just in time’
