The Problem Statement Research Paper Samples

Type of paper: Research Paper

Topic: Middle East, Business, Commerce, United States, Trade, Oil, America, Countries

Pages: 9

Words: 2475

Published: 2021/03/18


This paper writes about the trade between USA and the Middle East countries. It stated the problem statement, purpose of the study, reason of conflict, importance of trade between USA and Middle East Countries. Some International companies are stated as examples in this paper. In this paper explain strategy bilateral agreement which is later made as FTA its attempt to improve trade relationships between USA and Middle East Countries and finally its beneficial strategy for both sides.

Introduction to study

Internationally trade is recognized as the basic element to strengthen the economics of the world so there should be critically focused on the trade activities throughout the world to regulate it properly but there is massive issue about the trade between the USA and the Middle East Countries in which Turkey, Egypt, Iran, Iraq, Israel, Lebanon, Gaza strip, Jordan, Sudan, and Libya includes.

Iran, Iraq, the Israeli Palestinian peace process are the main element to block the trade activities between them and USA. As the security is so basic in that region there is financial matter issues that understandably gain less attention. Whenever people concentrate on financial aspects they mostly focus on Western economics backing. The financial aspects are the key element of long term prosperity in the region while the trade is about great deal than economic prosperity.
As the35% of the world’s crude oil resources are based in the ground of the Middle East countries and the America has the thirst to get that because of their oil consumption rate is greater than their domestic resources of oil. So America always want to import oil from the middle East countries but no one country is bound to export their resources and Middle east countries intentionally do not want to trade with Americans therefore America forced them and trying to dominate on them (Carvell, 2012).

Purpose of the study

Purpose of the study is to find the possible actions taken to improve the trade between the USA and the Middle East Countries.

Reason of conflict between the trades of USA and the Middle East Countries

Following are some major reason of conflicts between trades of USA and Middle Eastern countries:
Addition to the Israelis and the Arabs there is also a third party, for their own interest, in the confliction is Foreign Elite. There would be no Middle East clash on the grounds without them. That is the remote impact that keeps the circumstances to from being determined. Unfortunately the Palestinian Arabs and Israeli Jews confess that they both are worst foe of each other and the leader of both sides portrait this picture into their public and they both consider third part Foreign Elite as their common enemy (John, 2008).
Sales of guns: worldwide rams selling to the Middle East countries. The outsiders meddle in the Arab-Israeli clash with a specific end goal to endeavor and control the broad petroleum assets in the area. The foreigner have utmost attraction towards that resources of the petroleum that’s why they want to be dominating in that region but that region people did want to do so.
Peace in the Middle East will be established if the western powers reduce their considerable intervention in the quest for peace. By keeping the areas temperamental picture alive, the media, as the sole wellspring of data by which individuals can plan their recognitions, give a reason to the outsiders to meddle, and in the meantime serve to persuade everybody that these western countries need peace, regardless of the way that they have been looking for it for more than 50 years, futile. The media never address the propositions or motivation of the FE. The media consequently give the paste which keeps the contention going. Without the mainstream always giving an account of the contention, there would be peace, as everybody would overlook that the Middle East is insecure and hence in need of settling through new peace activities . Fraudulent national leaders are the motivation behind why honest to goodness, prevalent leaders are not at the rudders of nations in the Middle East. In the event that Middle East leaders are chosen and considered prominent by their own particular individuals, the FE will defame them as radicals, terrorist leaders or foes of peace, and therefore de-legitimize them in the rest of world. By what means can honest to goodness conjunction grab hold if the inspiration for the leaders at the both ends is satisfying their remote experts than their own particular people groups? (Bainerman, 2009)

The importance of trade between USA & Middle eastern countries

There is an enormous positive open door in the Middle East. This is a district with an abundance of human capital holding up to be engaged; the inquiry is, the way to fulfill that strengthening. The U.S. exchange motivation is a vital part of the bigger project the president has laid out for the area. We will expand on our unhindered commerce concurrences with Jordan and Israel. We will offer different understandings, graduated steps customized to the distinctive levels of monetary improvement and financial freedom in the district. We will set an objective - without a doubt a goal-oriented one - to make a Middle East organized commerce territory in 10 years. It was "the heart of the bazaar." It was the focal point of products exchanging among Europe, the Caspian area, Africa, India, the distance to China. Improvements, for example, letters of credit additionally began in the area. To put it plainly, the establishment of current exchange and trade in a few courses developed out of the Middle East.
The Arab business group is additionally experiencing an n attitude change. Any nation anywhere on the earth can create and produce opportunity in the event that they need to. Their salary levels are around 22 percent higher than the U.S. normal. Of these settlers, an amazing 36 percent have finished school. Take a gander at the Arab migrant populace in the United States.
Presently, there are additionally financial open doors for America in the area. With 312 million individuals, the Middle East is one of the quickest developing populaces on the planet. This speaks to generally an undiscovered business, offering extraordinary potential for the fare of businesses. For this to be conceivable, there will must be development from closed economies. We are now beginning to see that in a portion of the nations with which we have free trade agreement (Lawrence, 2006).
As it were, exchange and business engagement between the United States and the Middle East aides reinforce the bonds made by political understandings and between individuals - a righteous cycle of speculation, development, benefits and occupations in which everybody advantages.
We are living in a period in which the assets accessible to governments are overshadowed by the inconceivable aggregates needed to fabricate the base and goad the financial development residents anticipate from their legislatures. This is as valid in the United States as it is for the nations of the Middle East - we all review how essential employment creation was as an issue in our 2012 races. Today, over the Arab world governments are confronting the disappointed desires of huge populaces of unemployed youngsters, for the most part youthful men. The groups of numerous youngsters have contributed their constrained assets and their desires for better lives in instruction, yet have frequently observed that there are no occupations accessible to graduates (Patterson, 2014).

The international US and Middle Eastern companies

Building a solid arrangement of interesting and complex development ventures Turner has been working in the Middle East since 1975. Turner international Middle East developed in 2006 by the Turner cooperated with Dubai-based worldwide property creator Emaar properties PJSC to mutually grasp provincial development opportunities and structure. Turner's current existing in the Middle East/North Africa locale incorporates the United Arab Emirates, Egypt, Saudi Arabia, Qatar and Kuwait.
The largest publicly listed company in the region is the Saudi chemicals giant, Saudi Basic Industries Corp. (SABIC). It is one of the world’s leading manufacturers of chemicals, fertilizers, plastics and metals, with annual sales of $23 billion. The company was founded in 1976 to turn waste natural gas from crude oil extraction into petrochemicals products and is now the world’s third-largest producer of polyethylene, with half its sales going to Asia.
Saudi Basic Industries Corp. (SABIC) is the biggest freely recorded organization in the area. It is one of the organization was established in 1976 to transform waste common gas from raw petroleum extraction into petrochemicals items and is currently the world's third-biggest maker of polyethylene, with a large portion of its business going to Asia. It’s the world's major producers of chemicals, manures, plastics and metals, with yearly offers of $23 billion.
The Bahrain National Oil Company (BANOCO), entirely possessed by the Bahrain Government, and is the holding organization for the Bahrain Petroleum Company (BAPCO) National Iranian Oil Company (NIOC) - oil and gas investigation and generation, refining and oil transportation; National Iranian Gas Company (NIGC) – oversees gathering, conduct, handling, transmission, appropriation, and fares of gas and gas fluids; National Petrochemical Company (NPC) - handles petrochemical creation, dispersion, and fares. Divisions of Kuwait Petroleum Corp. include: Kuwait Oil Co. (KOC), Petrochemical Industries Co. (PIC), Kuwait Oil Tanker Co., Kuwait National Petroleum Co, Kuwait Foreign Petroleum Exploration Co. Kuwait Petroleum International (KPI, London) and Kuwait Foreign Petroleum Exploration Co (Kufpec) (Wang, et al., 1992).

The strategies to improve trade between USA & Middle eastern countries

In 2003, in a discourse at the University of South Carolina, President George W. Shrubbery proposed making a far reaching free trade agreement (FTA) between the United States and the Center East (MEFTA. The Bush Organization has started to execute this strategy by arranging FTAs with Morocco, Bahrain, Oman and the United Arab Emirates. Notwithstanding the prior understandings that had been marked with Jordan and Israel this implied that by 2006, the US had six final FTA plans with nations from the district and a seventh with the UAE was in prospect (Head, Ries, 1998).
For Arab nations, the fascination of Free Trade Agreements with the United States stems principally from four sorts of monetary preferences they could give. In the first place, there are the direct advantages that originate from expanded exchange and venture. Facilitated commerce Agreements bear the cost of particular access to the vast US advertise that could bring about expanded fares and more ventures by both outside and neighborhood firms. They will likewise enhance customer welfare by decreasing residential costs and expanding rivalry and decision in the local business sector. Second, the consensus can be utilized to enhance exchange relations of Middle Eastern Countries opposite other exchanging accomplices. They will lessen the exchange redirection that outcomes from other particular game plans, for example, the Euro-Med Agreements with the European Union. They will likewise improve the area's dealing force with different nations that will wish to be agreed treatment like that acquired by the United States. Third, the understandings can help to advance expanded local mix. In the event that few nations in the district consent to comparable arrangements, these can likewise be utilized as the premise for extending territorial financial mix.
The most aspiring trust is that that the US activity could limb all Arab nations to make these essential strides versus the US and afterward with one another; a to a degree less yearning result would be for a select gathering of nations to dispatch a territorial joining that accomplishes profound monetary mix among those nations who are willing. Finally, and maybe above all, the consensus can support with domestic welfare change.
In any case, what is especially reaching about the accords marked by Morocco, Bahrain and Oman is their complete and profound character. They oblige liberalization, not just for exchange all products, including agribusiness, additionally numerous administrations and remote direct speculation. Specifically in the prototypical US contract obliges basically finish liberalization of modern and horticultural items, far reaching scope of business sector access for administrations, rights of foundation with couple of special cases for outside venture, commitments to ensure protected innovation more broad than those in the WTO Trade Related Intellectual Property (TRIPs) understanding, duties on government obtainment, arrangement straightforwardness, specialized boundaries and models, and procurements to hold fast to work, and ecological measures that are all implemented by debate settlement contract sponsored by the likelihood of the suspension of concessions
The profound character of these contract mirrors the way that while the Middle East has been given novel political need, the US is likewise arranging comparative understandings in view of a standard format with different nations in numerous parts of the world. The Administration has attempted not to leave from this layout, mostly in light of the fact that it mirrors the sort of understanding the US congress will bolster and incompletely in light of the fact that it would like to set a point of reference of leaving from the structure that different nations can indicate (Lawrence, 2006).


FTAs have ended up being one of the most ideal approaches to open remote markets to U.S. exporters, and the contract in the Middle East have fortified the focused position of the United States in that area. FTAs are satisfying the wish communicated by President Bush in 2003 as The FTAs are additionally reassuring monetary advancement, straightforward and responsible administration, and improved financial prospects for the residents of those nations. A Middle East Free Trade Area not just will convey chance to U.S. organizations additionally will also bring the Middle East into a growing circle of chance give want to the individuals who live in that area.


Moderate Arab states, for example, Morocco and Jordan, and Bahrain are currently recovering the thoughts of this more prominent Islamic past. It's a battle of monetary reformers against the individuals who dread modernization on the grounds that it debilitates their energy to threaten. Also, its a challenge of the individuals who welcome closer ties with the West against the individuals who see us as an adversary. At the same time the United States is not without impact, for monetary development and open social orders are critical devices of progress. Through unhindered commerce contract people can grasp transforming states, empowering their change and supporting their chances for achievement even as they open markets for America's products and administrations.


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