Business

International Business Research

Mingjie Ma

National University

Abstract

Oil producing countries are known to depend overly on the oil products as the main source of revenue. Minimal effort is put in place by the governments of oil producing countries to diversify the sources of income. The oil-rich countries see that most times, the revenue earned from the oil give the countries a surplus in the balance of payments. Using the three countries: Saudi Arabia, Kuwait and Iran, the research look at the available resources at their disposal, the economic diversifications that are present and most importantly, the barriers to entry for investors who want to invest in the countries. The aim of the research is to show whether these countries maximize the utility of their resources and whether there are gaps that have led to the over-dependence on oil as an income-generating commodity. A background analysis of the countries will be important so as to enable the understanding of how far the economies of these countries have come. The paper also proposes recommendations that can enable the countries diversify their sources of income and attract foreign investors and foreign direct investments.

Introduction

Availability of resources does not make a country rich; it is a combination of multiple factors present in the country (Brivens, 2008). This ranges from the geographical location, culture, political environment, technological advancement, economies of scale and other business related factors that will be discussed in the paper. All these factors play an important role in the economy of any nation. They are also the factors that determine how attractive a country can be businesswise and hence attract investors in the process. The research aims to explore whether Kuwait, Saudi Arabia, and Iran have explored their full potential in resource utilization.

Literature Review

When the name...