Assignment

Im posting the guidelines to a paper on Saudi Arabian and Emirati export oriented industrialization strategies below. The paper should be 7 pages in length not including any graphs, charts or tables used. Again this paper is on SAUDI ARABIA and the UAE.

You should start your paper by explaining that the Export-Oriented Industrialization Strategy is based on the theory of comparative advantage - by extending the export of products with comparative advantage, the country could improve resources allocation within the country, get more profit from international trade and help to develop the economy. Cite few sources in this regard.

The advantages of this kind of economic development model, putting the country's products into the international competition, are undoubtedly obvious. Most of the countries using this development model obtained a rapid economic growth, which proves that the view that only import substitution can lead to the development of traditional industries is totally wrong.

Compare simultaneity the two case countries (do not evaluate each country separately) by discussing the following aspects:

• Identify in each country the export sectors that present a comparative advantage for your case countries . What is the share of each major sector in the international market?

• In each country , identify major industrial products in each country and look at the weight of these products in the total exports. What is the portion of manufactured goods versus raw materials?

• To what extent reduced tariff barriers and devaluation of national currency are utilized to boost exports?

• What is the government support for exporting sectors (subsidies, credits to export, tax cut ..etc.)?

• Does exports companies have a preferential access to the local markets

• Discuss whether the two case countries have a deficit or a surplus of the trade balance. Then, see if the industrial exports can cover imports of industrial import needed for industrialization.

• What is the country terms of trade?

• Discuss ratio of the total of exports to GDP. Then , total industrial exports to GDP. Compare these ratios for the two nations. The goal is to see the exports (mainly manufactured goods) achieve export-led growth?

• Assess whether export of manufactured products used to substitute the export of primary products.

• Does export-led growth improve the case country's foreign-currency finances? In other words, after paying for imports are currency reserves left to support the government finances?

• Is the productivity growth of export goods is higher than the proportional wage growth and the productivity growth of non-tradable goods? In this is the case, export price should decrease in the export-led growth country and exports should become more competitive in international trade.

In your evaluation, discuss which country had benefited more from the Export-Oriented Industrialization Strategy, in terms of boosting (i) GDP; (ii) financing import by exported manufactured good; (iii) currencies reserves generated from exports; (iv) the increase of export of manufactured goods compared to raw materials goods; and (vi) the attractiveness of FDI operating in manufactured goods exporting sectors.

Concerning the format, your final draft should include the following items:

• Cover page
• One-page executive summary
• Introduction
• Analysis & Interpretation
• Conclusive remarks and recommendations
• References page with a minimum of ten references. (Wikipedia, Investopedia, videos, and audio materials cannot be used as references.)
• Appendix (If applicable)