March 8, 2013
Building a Foreign Business Venture in Iraq
Table of Contents
Natural resources and Environmental Sustainability 3
Socio – Cultural Forces 6
Economic and Socioeconomic Forces 9
Competitive and Distributive Forces 13
Political Forces 16
Natural Resources and Environmental Sustainability
Iraq is located in Western Asia in an area known as the Middle East. It is bordered by six countries as follows; Turkey, Iran, Jordan, Kuwait, Saudi Arabia and Syria. It doesn’t have a very long coastline but it does border the Persian Gulf for a stretch of thirty-six miles. Iraq consists of 169,235 ...view middle of the document...
Having been able to establish a new government not ruled by a dictator, lead to Iraq being able to enter a partnership with Europe for trade. Europe has become a major trade partner with Iraq which amounted to over thirteen billion Euros in 2011. The largest piece of this being the oil imports into Europe which represents 99.7% of all imports from Iraq. On the other side Iraq has form trade with China, Syria and Turkey as the major countries in which they import from even though they do also rely on Europe which largely supplies machinery, transport equipment, chemicals, food and love animals. In Europe, the trade ties with Iraq are viewed as an essential part of the reconstruction and development for Iraq. The commitment for the investment into Iraq from Europe would be exceedingly beneficial for the development of Iraq. Although Iraq has changed their government which is helping to build their ability to further trade agreements and develop the nation, they have been politically relevant because of the dictatorship of Hussein which probably hindered many possibilities for trade.
The culturally Iraq has one of the world’s oldest histories that date back to Ancient Mesopotamia and helped shape the civilizations of the old world. Iraq is known for poetry and painters and hand crafted items like rugs. Although much of Iraq has been rebuilt over the years there is still a sense of where the culture came from as between all of the modern construction you will be able to find old buildings and compounds that remain part of the cities. Unlike most of the countries in the region, Iraq embraces its past where writing and the wheel were both invented. Politically Iraq was under a dictatorship for many years but was able to escape this government with the help of US and British forces almost a decade ago and now hold democratic elections which are helping to contribute to the redevelopment of the country in trade and many other ways.
Iraq is centered in the middle of six other nations but has a small coast line of 36 miles along the Persian Gulf. Although this is not much of a coast there are two major rivers, the Tigris and Euphrates which can help contribute to the exporting and importing of goods through Iraq as they lead to the narrow coast line on the Persian Gulf. Although the climate in Iraq is hot and dry in most parts of the country this does not have an influence on business for the country as their main export is oil.
Based on the region of the world Iraq is located and the resources available in the country mineral and energy resources are almost the only sustainable export items for Iraq. The minerals found in the country are salt, coal, gypsum and sulfur but none of these are nearly as large a contributor to Iraq as the oil that is found there and the amount of exporting they do of the oil. With the changes in the country over the last several years Iraq has turned into a power house when it comes to exporting oil and because the...