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? I would describe Egypt’s economic policy as command economy due to the government being so involved in the process of creating increase in Egypt growth in economy. Yes, I believe that it boosted Egypt grow rate. Egypt was seen by other nations that they were willing to become more of a global player. Egypt was able to create different income sources in order to help there economy.
2. How vulnerable is the Egyptian economy to a slowdown in global economic activity such as that which occurred in 2008– 2009? I think they are very vulnerable because they have difference in the classes. It seems that they only have to classes rich and poor. Egypt has inflation and “Moreover, as the global economic crisis took hold in late 2008 and the world economy started to enter a recession.” (p. 87) The avenues that were bringing in revenue were starting to slow down such as tourism, expatriate workers were neither coming back to their homeland nor sending money back.
3. What are the potential risks inherent in Egypt’s current political system? What is the best case scenario going forward? What is the worst- case scenario? That the current system is outdated and does not really reflect is happening in the global economy. The best scenario going forward is to become more of a democratic society where they have elected officials with a set of checks and balance for the government. The worst-case scenario would be to continue the way they are going. “Where the people are disenfranchised, one can easily envisage a situation where economic turmoil spills over into the political arena, destabilizing the country and setting it on an uncertain future path”. (p. 88)
4. All things considered, is Egypt an attractive market for international business? What advice would you give to a multinational enterprise...
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