International Business Environment Essay Example | Topics and Well Written Essays - 3500 words - 1

International Business Environment - Essay Example erstwhile a British colony, Kuwaits independence was granted in 1961. Throughout, its economys survival is almost entirely bolstered by its fossil oil production and sales. With the income, the government can have considerable support for its revenues, and attract in foreign workers (Factsheet, 2007).When Iraq low Saddam Hussein absorbed Kuwait in the 1990s, Iraq was overthrown from the country by a US-led military coalition, an force known as the 1991 Gulf war. With that aid, Kuwait became a close ally of the US (Factsheet, 2007).As IMF and the orb Bank encouraged most of the countries to do, Kuwait opened to foreign capital and vied for international investment starting time from the 1990s. Mainly, Kuwaits strategy is to produce and sell as much oil as they can worldwide that it would arrest largely, the sole provider of the worlds oil and US would certainly have it in its interests. (Pfeifer, 2002) Being the fourth largest m anufacturing business now, this isnt a far-fetch goal.FDI had been advocated by many to be the boost developing economies need in order to forward motion sustainably. Globalization done FDI is a mainstream event since the 90s. But policymakers in Kuwait as in the another(prenominal) developing countries are not aware that when their economic fundamentals do not match what is indispensable for this increase in FDI, however many the incentives they offer to attract FDI , they would just go to waste. But, internationalization through exports is Kuwaits overriding strategy it is a country looking toward development by globalizing through FDI. (Nunnenkamp, 2001)Kuwaits Foreign ship InvestmentA costly financial initiative like the later-to-be-discussed FDI Law is implemented because Kuwait anticipates the potency benefits to outweigh these costs. But the views shortcoming is that Kuwait, like the others, cannot be sure if FDI really could do much in gearing them towards development. After all, the impact of FDI relies on many