Dubai Under Pressure

Topics: Nationalization, United Arab Emirates, Egypt Pages: 2 (525 words) Published: November 20, 2012
Under Pressure, Dubai Company Drops Port Deal

1. Discuss the role of political factors-both in the united states and in Dubai- played in the reversal of the port deal. Solution:

This case talks about the disparity of the American political parties against the ownership of port operation by the state owned Dubai company. The republicans and Democrats being the opposition party were disfavoring the sale of some terminal port operation to DP World an Arab state company. Even though Bush being the president of the ruling party was not able to stop the transfer of control of the terminals due to the force of political decision. The force that played in the reversal of the port deal was mostly security issues related with Arab world, there was a huge protest about economic security of United states. The Democrats and Republicans were backdrop of concern about possible terrorist attack . Whereas the ruler of Dubai was willing to transfer the lease to the American company to avoid any further damage. He also had to withdrew the deal to maintain a friendly relationship and to maintain a political stability in the host country.

2. How did the concerns of the US public result in a business decision by a Dubai company? Solution:

As it is said in the case, that the outcome did nothing to solve the underlying issue exposed by an uproar that has consumed the capital for weeks. It means that the people were not happy but were panic stricken with the fact . The terror of 9/11 has created a phobia in mass. Media has stereotyped the American people by only showing the dark side of the Arab world. So the concerns of the US public result in a business decision was very unfavorable and prejudice.

3. Do you agree with the decision, accepting that transportation takes place through a global network of companies? Solution:

Yes, I do agree with the above decision, because owning all the transportation company by the state would...
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