Introduction
Globalization explains how trade and technology have increased connectivity and interdependence worldwide. According to Cote (2021), globalization is the growth in the cross-border movement of capital, commodities, people, services, and ideas. In this report, Dubai is the region of choice for analyzing the effect of globalization on variables such as economy, politics, culture, security, and health. International Monetary Fund (IMF) outlines four aspects of globalization; trade, movement of people, capital movements, and spread of knowledge and technology (IMF, n.d). The three facets of globalization taken into account in this report are trade, movement of people, and capital movements and their effects on the people of Dubai because they often impact a region’s economy and health sectors.
Effects of Trade Globalization
Studies done by researchers prove that trade globalization has impacted the economy of Dubai both positively and negatively. It has delivered beneļ¬ts like faster development, improved living standards, and more commercial opportunities to the people living in Dubai. Kamrava (2020, p. 521-537) stated that there had been increased foreign and domestic investments in Dubai due to trade globalization. It is happening because of favorable conditions for foreigners, like tax-free zones. Through globalization, Dubai has achieved a trade surplus and a favorable trade balance. It has witnessed a genuine appreciation of the currency rate, a booming stock market and real estate sector, the building up of reserves and monetary expansion, and implications on output and consumption (Seznec & Mosis, 2018). Residents are earning a living through trade and improving their well-being and health. The drawback of trade globalization in Dubai is manifested in small and medium-sized businesses. Local production in Dubai has been suppressed, and small entrepreneurs find it hard to compete internationally because of heavy capital requirements (Heim et al., 2019, p. 915). Despite its negative side, international trade positively impacts Dubai’s economy and improves the residents’ well-being.
Effects of Global Movement of People
The movement of people is becoming a new norm of living. People are open to moving around the world, and Dubai has attracted the interest of travelers. People’s movement has positively and negatively affected the economy and health of the people living in Dubai. International travel has opened the interior of Dubai, promoting its economy with the growth of the tourism industry and real estate. International travel is among the world’s fast-growing industries, with an estimated 700 million tourists crossing international borders yearly (Parks, 2019). The movement of people has enhanced labor mobility, creating a labor pool that is essential for human resources in Dubai.
On the negative side, people’s movement has contributed significantly to the transmission and spread of infectious diseases (Sigler et al., 2021, p. 8). Covid-19 disrupted international trade and travel flow, which affected Dubai’s tourism, aviation sector, and education (Scientific Research, 2022). It is difficult to contain infectious diseases because people’s mobility is not limited anymore. The benefits of global movement of people benefit Dubai positively, especially the economy. The drawbacks cannot outweigh globalization’s benefits because there have been more developments compared to the underdevelopment associated with the disadvantages.
Effects of Capital Movement
Capital globalization has sparked investors’ curiosity, prompting them to diversify their holdings to include foreign financial assets. As one of the six emirates of Arab, Dubai is in the race with other emirates to attract foreign investments. The economy is one of the areas that is significantly impacted. According to Abdelbaky (2021, p. 5-10), Dubai is the favorite region globally for foreign direct investments. It created a free zone to deal with strict federal requirements, which required foreign investors to partner with local investors whose share must be 51% of ownership (Katsay, 2021). The free zones offer investment opportunities to foreign investors with 100% tax-free ownership, creating attractive investment points (Othman, 2022, p. 1-19). Through foreign direct investment, there have been increased projects across Dubai, which have created job opportunities for the residents improving their well-being (Mosteanu and Alghaddaf, 2019, p.9-20). Capital flow positively affects Dubai’s economy and is a significant contributor to overall economic growth in Dubai.
Conclusion
Globalization’s three aspects, trade, movement of people, and capital flow, have positive and negative impacts on Dubai’s economy, education, health, security, and culture. When the benefits of globalization are weighed against the drawbacks, Dubai has benefited more than it has suffered from globalization. Due to trade globalization, the economy has been improved by creating job opportunities which are the source of income for residents and tax points for the government. The movement of people has resulted in developments in the tourism industry, which is the government’s source of revenue. Capital flow has enhanced foreign direct investments, resulting in more projects and jobs. Globalization has drawbacks, such as the spread of diseases associated with the movement of people and low local production of goods and services due to trade globalization. The outcomes of globalization in Dubai can be generalized positive because the advantages outweigh the disadvantages.
References
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