The sudden economic crises of Dubai, a result of their own doing A Essay

The sudden economic crises of Dubai, a result of their own doing A critical perspective inside the Michael Porters diamond model for international businesses - Essay ExampleHowever with global recession hitting the arena in 2008 all investments came to a halt. The market became bearish and infrastructure projects came to a halt. Dubai was adversely affected because the property prices during normal times were sky high but dropped immensely during recession. It was felt by analysts that Dubai was like a pack of cards and its fall was inevitable. It was regarded as a monument of greed and vanity. It is in this context that the announce is prepared and it analyzes how the own doing of Dubai led to the crisis.The crisis is analyzed using Porters Diamond model and it has been be that Dubai largely depended on foreigners to avail its services. The house servant demand from locals was not very high. Porter has identified domestic demand as an all-important(a) factor for a firms competi tive advantage. This was Dubais weakness.As far as labor factors are considered there are not many local labors easy in Dubai. Dubai depends on laborers from other countries which is a setback for Dubai. Moreover lack of education is also an important factor which Dubai needs to work upon in order to be competitive in future.The United Arab Emirates is divided up into seven city states which has their own governments, own budgets, own legal structure and so on. Dubai has developed at a very fast pace but in the last decade it has increased it outgo massively in major infra structure projects in order to develop real demesne and to attract tourists. The Dubai problem started when Dubai World which is the state owned company having a liability of $60 million, inform its bail out plans (Spencer, 2009).The uncertainty regarding Dubai sent down shivers across the globe. It led to more than $14 billion being wiped out of the British banks. Although the total debt of Dubai was around $80 billion, the uncertainty had a rippling publication all across the globe (Hosking & Robertson, 2009).The report tries to find out the main causes