Business Enterprise Environment Essay

Business Enterprise Environment ( Hotel Industry in UAE & A ; China )ContentssIntroduction:Discussion:Approachs to Capitalism by UAE & A ; China:Comparison of UAE & A ; Chinese Economies:Comparison of UAE & A ; Chinese Social Environment:Comparison of UAE & A ; Chinese Political Environment:Scenario of Economic Growth & A ; Personal Freedom in UAE & A ; China:Decision:Mentions:


Capitalism is the term given to the modern epoch of denationalization.

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The history of Industrial Capitalism dates back to the 18th century. The innovators in this system were Adam Smith, David Hume and many other high individuals who bit by bit brought the Industrial Revolution. During this clip, the traditional merchandisers were replaced by more influential industrialists. After the Liberalization, Privatization & A ; Globalization ( LPG ) Era, the construct of Capitalism has gathered even strong drift. Now, most of the states all around the universe are to a great extent dependent on the investings from the private sectors. The Government-owned organisations are non plenty to better the GDP of the states.

In order to derive competitory advantage and achieve economic excellence, every state has to depend on private investings in different sectors like fabrication, technology, oil and gas, banking and fiscal services, insurance, cars, consumer durable goodss, etc. They are the primary beginning of the Government’s grosss. This study seeks to reflect the Capitalistic scenario in UAE and China in the Hotel Industry ( dfm, 2014 ) .


Approachs to Capitalism by UAE & A ; China:

In UAE, the construct of Capitalism in industry has been deriving popularity with each passing twenty-four hours.

The UAE Government is coming up with major investings from the private sector in different countries like health care, cars, hotel and cordial reception, air power and other industries. However, the treatments in this study will go around around the Hotel Industry in these two states. The state of affairs in UAE is non really ideal for the occupants of the UAE. The population of the state is around 8 million.

But, it is surprising to cognize that among them simply 20 % people are given the position of citizenship and are entitled with full rights of being citizens. UAE has one of the highest Per Capita Income in the universe which amounts to around $ 48,000. The local people enjoy free services like wellness services, H2O supply, electricity services and societal security services. However, the immigrants are non provided the same societal and economic position. There is pronounced difference in the rights of the locals and the immigrants. There is enormous inequality and wealth disparity. The Hotel Industry is nevertheless, one of the major countries of gross for the state ( Atkearney, 2013 ) .

In China, the terminal of 1976 can be counted as the epoch of reformation after the Mao epoch. The Capitalistic roar in China started from the terminal of the 90s. After that China was incorporated into the World Trade Organization in 2001. The Student Movement in China of 1989 can be termed as the accelerator towards the Capitalistic Revolution in China.

After this period, China has truly seen immense economic development and the Hotel Industry have besides boomed to a new tallness. It was at its choice in 2010 nevertheless it fell a spot in 2014.

Comparison of UAE & A ; Chinese Economies:

The Hotel Industry in UAE is in a roar stage. There are immense sum of investings which are coming up from the private sector which has led to the development of some of the best hotels in UAE like the Burj Khalifa, Burj Al Arab and others. The UAE makes a immense net income by exporting rough oil and other crude oil merchandises to other states of the universe. It is an OPEC member. This has made the economic system one of the best in the universe.

All the grosss which the state earns from the exports of oil merchandises are invested in private sectors in the Hotel Industry.In comparing to UAE, China is mostly dependent on FDIs from different states. It has been observed that FDI in China sums to about 27 % in the field of productions which add value to the country’s economic system. About 200 states invest in China. So, this FDI is besides done in the Hotel Industry. But, in the current scenario, it is being observed that the private participants are bit by bit traveling to some other sectors instead than in Hotel Industry.

This is because the figure of tourers sing China has declined in 2012 and 2013.

Comparison of UAE & A ; Chinese Social Environment:

The impact on Hotel Industry in UAE is besides based on its Social conditions. There are two societal classs for the Emiratis.

These are the Nationals and the Immigrants or the Foreign People who are the Expatriates. The societal categorization can be categorized into the followers:

  • The Governing Community- They is the Sheikh Rulers who enjoy the maximal wealth and societal position in the state.
  • The Merchants- They is the initial pearl bargainers, but now they are into selling consumer goods.
  • The Middle Class- They are the professionals who have received instruction for free and are doing their ain life.

  • The Low Income Group- They are the nomads or Beduins who have late found colonies in the state and besides the pearl frogmans and the husbandmans who farm in the oasis of the state.

The bulk of the gross earned from the Hotel Industry is enjoyed by the wealthier category like the swayers and the Merchants. The immigrants are non dealt with equality.

The Chinese Society is led by the Han who are the superior category of the society and they constitute about 92 % of the cultural groups. The remainder are the minority communities. The state chiefly observes Buddhism along with Islam, Taoism and others. This society is non good adept to the positive results of the Hotel Industry as compared to UAE. The state is governed by the Chinese Communist Party. There is more of independent regulation in the state ( Arabianbusiness, 2014 ) .

Comparison of UAE & A ; Chinese Political Environment:

The political environment in UAE is governed by the President.

There is besides the Prime Minister. The Sheikhs are besides the opinion community with immense aggregation of wealth. This political scenario has led to the environment which is helpful for the private investings in the hotel and other sectors. The President encourages private investings in the hotel sector, which is why UAE, presently houses few of the best hotels in the universe. The UAE is really rigorous in its security systems. There are capital penalties meted out to those who have done sedate offenses. This depends on the orders of the President. This is why UAE has so many less scenarios of offense and larceny.

The politicians are really influential in conveying in the investings in to the Hotel Industry.The Chinese Political Environment is much more controlled by the Chinese Communist Party. The President and the Military hold the top place in the hierarchy. This scenario has led to certain limitations in the sudden roar of the Hotel Industry. Although there are many states who invest in China in different undertakings, but non so much in the Hotel Industry. That is why it might be said that UAE is a far better finish for the outgrowth of the Hotel Industry as compared to China.

The Han, who is the taking community, has certain power over the other minorities. They are frequently given societal and political favours as compared to others. But, there is non so much wealth disparity in China like in UAE ( Fogel, 2014 ) .

Scenario of Economic Growth & A ; Personal Freedom in UAE & A ; China:

The economic growing in UAE and China are both accomplishing a higher curve over the last few old ages. Both the states have really high execution of advanced and modern engineering in every sector. While China has brought technological inventions earlier than UAE, yet the drawback in China is the presence of double quality merchandises, which could be harmful to the society due to the extra presence of lead and other harmful substances.

This is the ground why the modern universe has started to disregard few of the Chinese merchandises like playthings and other electronic goods. However, there is personal freedom of the occupants to the extent as possible within the bounds of jurisprudence. The Han are the highest credo of the society. The people belonging to the minority community are allowed to show their freedom of address and action.In UAE, nevertheless there is a different scenario. The opinion Sheikhs and the flush Merchant categories enjoy the bulk of the wealth that the state earns from exporting the oil and gas merchandises to the different states. There is great inequality of income distribution.

The local people of the state are given the best of benefits. The immigrants are non given that sort of advantages. There is besides a occupation penchant given to the Emiratis in the different sectors. However, there is limitation on the activities that adult females can make, particularly the Muslim Emirati adult females.

They are non allowed to work in any sector every bit freely as some of the other states. This is because the civilization in UAE is really conservative. It is believed that the local Emirati adult females were merely to pull off their family responsibilities.

This is why there is less engagement of the local adult females in the health care sector ( Gulfnews, 2012 ) .


In the terminal it might be said that, UAE and China are two contrasting states with different societal, economic, political and cultural factors. Hence the scenario of Hotel Industry in both the states is different. UAE is more contributing to hotel industry as compared to China. This is because the UAE Government has significantly encouraged private investings in the Hotel Industry. However, in China the scenario is non contributing for investing in Hotel Industry, because it is a state which chiefly encourages FDIs in other sectors like consumer goods, electronic goods and others. This study has discussed about the Capitalism scenario in both the states and how both the states have used it to their advantages.

It might be said that both UAE and China are really good states for foreign investing and growing of the private sector industries. The technological advancement in both the states has been genuinely applaudable. This is why both of them are the taking economic systems in the universe.



( 2014 ) .Emaar Misr sets IPO monetary value at 3.8 Egyptian lbs per portion. Retrieved from arabianbusiness: hypertext transfer protocol: //www. ( 2013 ) .China ‘s Hotel industry. Retrieved from atkearney: hypertext transfer protocol: //www. ( 2014 ) .NASDAQ Dubai securities are included in the tabular array above in US Dollars. Retrieved from dfm: hypertext transfer protocol: //www., G. K. ( 2014 ) .Business ENVIRONMENT IN CHINA:.

Retrieved from usi: hypertext transfer protocol: // ( 2012, September 10 ) .

Trade between the two states grew to $ 15.6 billion in 2012. Retrieved from gulfnews: hypertext transfer protocol: //


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