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International Management

Essay by   •  June 26, 2017  •  Essay  •  700 Words (3 Pages)  •  1,148 Views

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Political

In Dubai, there is a well defined, sound legal framework for businesses and a clear set of ownership rules. This helps Thai express to have a piece of mind when they wish to open a business in Dubai.

On top of that, foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises (Government of Dubai Website, 2009).

The average salary of a cook in Dubai is between 1,000 - 10,000 dhs a month, for a waiter/waitress it is between 1,000 - 5,000 dhs a month. In addition to the average salary of employees there are also health regulations that need to be met by the business in order to maintain its work flow.

Economic

Economic factors are extremely important to Thai express as it is a restaurant. This is because Thai express is a luxury, not a necessity; people must have the disposable income to spend at a restaurant. Economic growth is, therefore, extremely important for Thai express. A restaurant will also be affected by the economic factors that affect most businesses such as the cost of capital and inflation.

In Dubai, the customs duties are low at 4% with many exemptions, 100% repatriation of capital and profits is permitted.

There are also no foreign exchange controls, No trade barriers or quotas.

Social

A large expatriate population (mor80%).

In Dubai, the political factors that affect their business activity includes the Muslim religion. Therefore, serving food such as pork and drinks such as alcohol is against the laws of Dubai. Although in Mexican culture, pork is mainly used to create the traditional dishes of the country, however to come to understanding with the social aspects of Dubai the meat has to be changed to suit the Muslim culture.

Thai express is a Halal cuisine and therefore they do not serve any porks or alcohols and therefore they can be very successful in Dubai.

Dubai also has a health-conscious market or a market that prefers high fat foods. Another important social factor is the attitude that people have toward restaurants and eating out; a restaurant stands a much better chance in a market where people prefer to eat out than in one in which people prefer to stay at home.

Technological

With a network of seven industrial areas, one business park and three highly successful specialized free zones of international distinction, two world class seaports, a major international airport and cargo village, a modern highway network, state-of-the-art

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