Economy Iraq Largely Relies On Oil Mining - 1630 Words

The economy in Iraq largely relies on oil mining. Oil in the country accounts for approximately 90 percent of government revenue and an estimated 80 percent of its foreign exchange earnings. The Iraqi economy is mainly run by its government. The country’s security environment is improving and foreign investors play a role in spurring economic activities in the construction retail and energy sectors. This leaves a niche in their market and this is where we come in with our computer and auto parts investments. The county’s long term fiscal health, broad economic developments and improvements sustained in the overall living standards of the Iraqi people depend on its central government’s passing of major reform policies. (The World Factbook:†¦show more content†¦On the other hand, Iran, just like Iraq, relies on oil as its economic pillar. The Iranian economy is under the government’s control. Its economy in the private sector is limited to farming, small-scale workshops, a bit of manufacturing and services which leaves a gap for us to explore by setting up a textile facility (Richards and Waterbury, 2014). On its downside, price controls and several distortions in the country undermine growth in its private sector economy. In fact, Iran faces widespread corruption that has raggedly impacted its economy. The unemployment and under-employment level in the country is high and the lack of job opportunities has resulted in numerous young and educated Iranian workforce to seek jobs overseas. (The World Factbook: Iran, 2015) As for Lewis Globalworks Co., Inc. the brain drain in Iran will be used to our advantage such that we will be able to capture the skilled population in the country into our company thus benefiting us by providing products efficiently and effectively. Moreover, the US dollar will also be in our favor because 1 US dollar exchanges for 29,535 Iranian Rial. Although updating of technology has been prioritized, the country still lags behind in terms of innovation, science and technology. Iraq’s technology, including the equipment used in the oil sector are out of date while its research and higher education