Iraq's Economy
The Multinational OrganizationCAP/GM591February 10, 2014
Abstract
The products UBS (Union Bank of Switzerland) offers are great tools for many consumers around the world. Hedge funds, business and private banking are products among many other products designed to help the consumer’s financial needs. Iraq is a country with many financial problems triggered by years of oppression and corruption. The United States government and different bank institutions around the world are forming a coalition to help improve the economy of Iraq by bringing access to the outside financial world with products that will be accessible by the regular consumer. More financial options with more financial institutions for the citizens of Iraq will help them with …show more content…
their financial needs and at the same time help improve the Iraqi economy.
The Multinational OrganizationIntroduction
UBS (Union Bank of Switzerland) provides banking and financial services to many countries around the world in Europe, North and South America, the Middle East and Asia. One country in the Middle East UBS does not provide service in is Iraq. In recent months, the United States government called on JP Morgan Chase & Co. to run an U.S. operated bank in Iraq along with thirteen other countries, in order to manage imports and exports in Iraq. ("Bloomberg", n.d.) In a virtually new market like Iraq, UBS could bring competition that will bring more choices to their potential customers as well as they would be able to help boost an economy that is struggling and needs help from such organizations like JP Morgan Chase and UBS.
Choices Overview
UBS is a very diverse global financial services company, headquartered in Basel & Zürich, Switzerland. It is the largest manager of private wealth assets in Europe and the world, by market capitalization as well as profitability. Because of UBS’ leading position within the Global Wealth Management market it is very much at the cutting edge of delivering products and services in the global market. Other firms in this market look to UBS to set trends and develop new financial products. UBS employs over 62,000 employees around the world in over 50 countries. In the Americas a total of 21,995 in which the United States alone UBS has 20,833. Asia they have a total of 7,426, in Europe 10,829 and Switzerland 22,378. ("Ubs", 2013). With these numbers UBS is a good candidate to help boost the economy in a country that desperately need it.
Iraq’s economy remains unranked in the index due to the fact that their economic data still insufficient and unreliable.
Since 2003, the Iraqi economy has slowly recovered, but no significant progress has been made since the country still faces political and security challenges. Since the invasion of Iraq in 2003, the government of Iraq has worked on improving the economy and has attempted to improve their financial stability, however, corruption has been one of the main factors in the slow recovery of a struggling economy. According to "2014 Index Of Economic Freedom" (2014), “With its economic growth highly volatile, Iraq’s ongoing economic reconstruction, though facilitated by the oil sector and foreign economic aid, has been fragile.” (para. 2). With a stronger monetary and fiscal policy, the Iraq economy would be able to increase their status in the market and more private investors could become interested on the Iraqi …show more content…
economy.
Aspects considerations
When expanding business in to Iraq, the first thing UBS must consider is if there are economies of scale that will benefit their organization with an expansion to Iraq.
According to "Index Mundi" (n.d.), “The government of Iraq is eager to attract additional foreign direct investment, but it faces a number of obstacles including a tenuous political system and concerns about security and societal stability.” (para. 1). But that is not enough for UBS to expand in Iraq. Eighty-four percent alone of Iraqi exports is crude oil and with the uniqueness of their product and the worldwide necessity for crude oil, Iraq has the potential to have a great economy much like Kuwait and Saudi Arabia. One of the drawbacks of expanding to Iraq is the lack of fiscal responsibility, as well as the corruption within the government and organizations that do not help the Iraqi economy.
Competitors from other countries, including JP Morgan Chase are moving in as a task force to help the boost the Iraqi economy and minimize corruption. This is not a big factor for UBS since they are already working with worldwide competition ad they are one of the biggest banks in the world.
There is a big difference between the European culture and the Muslim culture. This aspect of the expansion plays a very small role since UBS is already doing business and very successfully in Muslim countries around the world.
Capabilities
UBS’ vast experience in the global market would be a great asset for the Iraqi economy. Having experience in over fifty countries with many different cultural backgrounds UBS would be able to fit right in, provide the Iraqi consumer with great financial products and contribute with boosting the Iraqi economy. UBS offers investment capabilities across worldwide markets, allowing Iraqi businesses and private investors alike the opportunity to access trading platforms around the world. In addition, UBS provides retail banking for private consumers, wealth management, small and medium business banking and financing and hedge funds solutions. Iraq only has local banks with limited resources available to the general at the moment. If UBS expands to the Iraq market with their banking products, they would bring competition to Iraq instead of having just one world banking leader in the Iraqi market.
Conclusion
UBS has the capabilities to help Iraq grown their economy to be very strong and to bring competition in order to maintain a financial balance of power. The economy of Iraq is a fragile one at the moment and UBS has the capabilities to help improve the Iraqi economy with their expertise and the products they offer. The country has gone through hard financial times for generations and finally the world community is pitching in to help repair a broken country. UBS could bring the help needed to repair the damage done by hundreds of years of oppression with their financial products and healthy competition.
References
2014 Index of Economic Freedom. (2014). Retrieved from http://www.heritage.org/index/country/Iraq
Bloomberg. (n.d.). Retrieved from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEKCAEHxVEBI
Index Mundi. (n.d.). Retrieved from http://www.indexmundi.com/iraq/economy_profile.html
UBS. (2013). Retrieved from https://www.ubs.com/global/en/about_ubs/about_us.html
Abstract
The products UBS (Union Bank of Switzerland) offers are great tools for many consumers around the world. Hedge funds, business and private banking are products among many other products designed to help the consumer’s financial needs. Iraq is a country with many financial problems triggered by years of oppression and corruption. The United States government and different bank institutions around the world are forming a coalition to help improve the economy of Iraq by bringing access to the outside financial world with products that will be accessible by the regular consumer. More financial options with more financial institutions for the citizens of Iraq will help them with …show more content…
their financial needs and at the same time help improve the Iraqi economy.
The Multinational OrganizationIntroduction
UBS (Union Bank of Switzerland) provides banking and financial services to many countries around the world in Europe, North and South America, the Middle East and Asia. One country in the Middle East UBS does not provide service in is Iraq. In recent months, the United States government called on JP Morgan Chase & Co. to run an U.S. operated bank in Iraq along with thirteen other countries, in order to manage imports and exports in Iraq. ("Bloomberg", n.d.) In a virtually new market like Iraq, UBS could bring competition that will bring more choices to their potential customers as well as they would be able to help boost an economy that is struggling and needs help from such organizations like JP Morgan Chase and UBS.
Choices Overview
UBS is a very diverse global financial services company, headquartered in Basel & Zürich, Switzerland. It is the largest manager of private wealth assets in Europe and the world, by market capitalization as well as profitability. Because of UBS’ leading position within the Global Wealth Management market it is very much at the cutting edge of delivering products and services in the global market. Other firms in this market look to UBS to set trends and develop new financial products. UBS employs over 62,000 employees around the world in over 50 countries. In the Americas a total of 21,995 in which the United States alone UBS has 20,833. Asia they have a total of 7,426, in Europe 10,829 and Switzerland 22,378. ("Ubs", 2013). With these numbers UBS is a good candidate to help boost the economy in a country that desperately need it.
Iraq’s economy remains unranked in the index due to the fact that their economic data still insufficient and unreliable.
Since 2003, the Iraqi economy has slowly recovered, but no significant progress has been made since the country still faces political and security challenges. Since the invasion of Iraq in 2003, the government of Iraq has worked on improving the economy and has attempted to improve their financial stability, however, corruption has been one of the main factors in the slow recovery of a struggling economy. According to "2014 Index Of Economic Freedom" (2014), “With its economic growth highly volatile, Iraq’s ongoing economic reconstruction, though facilitated by the oil sector and foreign economic aid, has been fragile.” (para. 2). With a stronger monetary and fiscal policy, the Iraq economy would be able to increase their status in the market and more private investors could become interested on the Iraqi …show more content…
economy.
Aspects considerations
When expanding business in to Iraq, the first thing UBS must consider is if there are economies of scale that will benefit their organization with an expansion to Iraq.
According to "Index Mundi" (n.d.), “The government of Iraq is eager to attract additional foreign direct investment, but it faces a number of obstacles including a tenuous political system and concerns about security and societal stability.” (para. 1). But that is not enough for UBS to expand in Iraq. Eighty-four percent alone of Iraqi exports is crude oil and with the uniqueness of their product and the worldwide necessity for crude oil, Iraq has the potential to have a great economy much like Kuwait and Saudi Arabia. One of the drawbacks of expanding to Iraq is the lack of fiscal responsibility, as well as the corruption within the government and organizations that do not help the Iraqi economy.
Competitors from other countries, including JP Morgan Chase are moving in as a task force to help the boost the Iraqi economy and minimize corruption. This is not a big factor for UBS since they are already working with worldwide competition ad they are one of the biggest banks in the world.
There is a big difference between the European culture and the Muslim culture. This aspect of the expansion plays a very small role since UBS is already doing business and very successfully in Muslim countries around the world.
Capabilities
UBS’ vast experience in the global market would be a great asset for the Iraqi economy. Having experience in over fifty countries with many different cultural backgrounds UBS would be able to fit right in, provide the Iraqi consumer with great financial products and contribute with boosting the Iraqi economy. UBS offers investment capabilities across worldwide markets, allowing Iraqi businesses and private investors alike the opportunity to access trading platforms around the world. In addition, UBS provides retail banking for private consumers, wealth management, small and medium business banking and financing and hedge funds solutions. Iraq only has local banks with limited resources available to the general at the moment. If UBS expands to the Iraq market with their banking products, they would bring competition to Iraq instead of having just one world banking leader in the Iraqi market.
Conclusion
UBS has the capabilities to help Iraq grown their economy to be very strong and to bring competition in order to maintain a financial balance of power. The economy of Iraq is a fragile one at the moment and UBS has the capabilities to help improve the Iraqi economy with their expertise and the products they offer. The country has gone through hard financial times for generations and finally the world community is pitching in to help repair a broken country. UBS could bring the help needed to repair the damage done by hundreds of years of oppression with their financial products and healthy competition.
References
2014 Index of Economic Freedom. (2014). Retrieved from http://www.heritage.org/index/country/Iraq
Bloomberg. (n.d.). Retrieved from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEKCAEHxVEBI
Index Mundi. (n.d.). Retrieved from http://www.indexmundi.com/iraq/economy_profile.html
UBS. (2013). Retrieved from https://www.ubs.com/global/en/about_ubs/about_us.html