EMG3340 International Management
Dr. Curtis Curry
May 2, 2012
Case Study: Egypt the Troubled Giant
Questions 1, 2, 3, and 4
1. How would you describe the economic policy that Egypt implemented during 2004-2008? Do you think that this policy helped to boost Egypt’s growth rate? Why?
The economic policies that Egypt implemented during the 2004-2008 time frame were made to reform economic policies that were hindering the countries ability to grow economically. Many of the policies in place were causing more damage than good to a country that was seeking to expand economically. In order for this to occur, the prime minister of Egypt at the time Ahmed Nazif began reforming these economic policies by reducing the tariff tax, deregulation, and changes in investment regulations. Eventually, with these changes Egypt saw great economic growth. Big name companies like Oracle and Microsoft built new office buildings and construction could be seen throughout the country. The reformed economic policies definitely helped boost Egypt’s growth rate as it provided more jobs and allowed outside businesses to operate within the country.
2. How vulnerable is the Egyptian economy to slowdown in global economic activity such as that which occurred in 2008-2009?
Egypt’s economy was very vulnerable during the economic slowdown in global economic activity. Although, Egypt saw much success after reforming there economic policies it didn’t completely solve all of Egypt’s economic crises. Inflation still remained high combined with the global economic crisis that affected all countries caused Egypt’s economic growth to slowdown. Tourism bought some money to the country but declined greatly the following year. Many workers who worked abroad and sent money back home suffered as well as jobs in the Gulf Coast were cut backed or shutdown. Also, the large gap between the rich and poor is also a major factor in there high inflation rate
3. What are the...