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In this chapter, the author considers a three-sector general equilibrium model in the context of a developing nation to find out the impact of an increase in foreign capital inflow on the welfare level of the nation. Comparative static analysis reveals that an increase in the inflow of foreign capital causes redistribution across the factors of production and a reallocation of resources, reflected through the change in output. Moreover, the author considers the case of technology transfer and proves that an increase in foreign capital inflow makes the country better off in terms of social welfare even if the foreign capital is fully repatriated. Hence, this work shows that in the absence of any trade distortion, a partial investment liberalisation causes a welfare gain for a small open economy.

This chapter aims to discuss the challenges facing these countries building productive capacity for development. This chapter makes use of data published by international organizations as indicators for measuring the state of development in the Arab region. Several indicators are presented to compare Arab countries with other world regions. The use of data identifies some of the gaps that countries in the Arab region need to close to strengthen capacity building for development and fostering economic growth. The findings from the data presented reveal that the productive structure in most Arab countries remains weak to generate production linkages and provide incentives for investment in nonenergy sectors. The failure of the export-led growth model to diversify output and promote development in energy producing countries has increased the dependence of these countries on global trade. Fluctuations in commodity prices and uncertainty about global demand for energy have influenced the ability of the state to construct strategies for rapid transformation. Except for the energy sector, the productivity of nonoil sectors remains low reflecting inadequate incentives and ineffective entrepreneurial capabilities. The study examines the challenges for building productive capacity in the Arab world. It illustrates the failure of the led-export model and its inability to prompted economic diversification, especially in the Gulf countries. The study contributes to the literature on capacity building in the Arab world so that to encourage researchers and students of development conducting studies concerning the main development challenges facing these countries.

Why is it that, despite repeated claims that digital-content firms and internet-based businesses can internationalize everywhere almost instantly, many seem unable to profitably expand outside their home markets? Why have emerging market firms (EMNEs) caught up with established developed-country multinationals (DMNEs) so much faster than expected? In this chapter, the author argues that the clue to these two puzzles lies in the realization that, contrary to the dominant view in the international business (IB) literature that focuses only on the intangibles exploited by DMNEs and assumes that these firms are free to unilaterally decide on their mode of entry and operation, doing business in a foreign country is only possible if intangibles are bundled with complementary local resources, usually held by local firms. Taking into account these complementary local resources and their owners makes it clear that DMNEs are not always free to choose their entry mode but must enlist the cooperation of local resource owners. The need of digital-content and internet-based firms for local complementary resources also explains why they sometimes experience problems when expanding abroad. Lastly, control of complementary local resources provides EMNEs with a home advantage against DMNEs competing with them in their home market. The author shows how EMNEs can capitalize on this advantage to obtain the intangibles they lack and need. The fact that these advantages are available on efficient global markets, while complementary local resources are not, explains the surprising speed of EMNE catch-up.

What kinds of support do interstate rivals provide to domestic actors in ongoing civil wars? And how do domestic actors utilize the support they receive? This chapter answers these questions by comparing Iranian and Saudi military and non-military (mediation, foreign aid and religious soft-power promotion) support to the Houthis and to the Government of Yemen (GoY) during the Saada wars (2004–2010) and the internationalized civil war (2015–2018). It also focuses on the processes through which the GoY and the Houthis have utilized this support for their own strategic purposes. This chapter applies a structured, focused comparison methodology and relies on data from a review of both primary and secondary sources complemented by 14 interviews. This chapter finds that there were less external interventions in the conflict in Saada than in the internationalized civil war. During the latter, a broader set of intervention strategies enabled further instrumentalization by domestic actors, which in turn contributed to the protracted nature of the conflict. This chapter contributes to the literature on interstate rivalry and third-party intervention. The framework of analysis is applicable to civil wars that experience intervention by rivals, such as Syria or Libya.

This study investigates how firms’ awareness of sustainability affects the revision of their internationalization strategy. Adopting a resource-based view (RBV) approach, the authors argue that sustainable-oriented firms have a higher propensity to de-internationalize (i.e., to go back to their home country) when confronted with the need to relocate foreign manufacturing subsidiaries, as the shortening of value chains would allow the reduction of transportation emissions and enhanced corporate image as green-oriented entities. Furthermore, the authors explore the role exerted by a stringent regulatory setting in the home country on the likelihood of de-internationalization. The empirical test conducted on a sample of relocations performed across European nations in 2002–2014 reveals that multinational enterprises (MNEs) – regardless of their sustainability orientation – have a higher probability to de-internationalize when their home countries have strict institutional contexts in place.

Introduction: Small- and medium-sized enterprises (SMEs) play a vital role in the economic development of economies by generating job opportunities. Considering their significance, understanding the challenges and skills required in these enterprises becomes essential and timely.

Purpose: This study aims to discuss the limitations and skill gaps faced by SMEs in emerging economies, such as India, Indonesia, Brazil, China, Malaysia, Ghana, Hungary, Saudi Arabia, South Africa, Türkiye, UAE, Iran, Kazakhstan, Türkiye, Zambia, Romania, and Vietnam.

Methodology: The study adopts a systematic review and meta-synthesis approach, utilising a literature review to comprehensively analyse, synthesise, and map the existing literature by identifying overarching themes.

Findings: The study examines the challenges SMEs encounter in emerging economies, including resource scarcity, limited access to credit, inadequate infrastructure, low technology adoption, restricted global market access, and ineffective marketing strategies. There is a notable shortage of skilled labour and development initiatives within SMEs in India even though the country has a sizeable pool of qualified workers. There is a pressing need for additional technical and managerial skills to remain competitive in the market. The findings of this study will assist HR managers in addressing skill shortages among employees in SMEs operating within emerging economies

Introduction: Cost competitiveness, customer focus, and sustainability compliance are essential for new-age firms to survive and succeed in the VUCA market environment. This study examines how automobile corporations have improved cost competitiveness, productivity, and product quality.

Purpose: This study examines the importance of cost competitiveness, customer focus, and sustainability compliance for the long-term survival of organisations in VUCA markets, looking at the practical efforts made by automobile corporations to enhance cost competitiveness, productivity, and quality.

Methodology: The study utilises a comprehensive analysis of the strategies and initiatives implemented by the selected automobile companies. It involves a review of relevant literature, case studies, financial data analysis, and interviews with key industry experts, providing a holistic understanding of the actions taken by these organisations to achieve their goals.

Findings: The study reveals that cost competitiveness, customer focus, and sustainability compliance are critical factors for the long-term survival and success of organisations in the automotive industry. The analysed automobile companies have undertaken practical efforts to improve cost competitiveness, enhance productivity, and ensure high-quality products, enabling them to navigate the challenges and maintain a competitive edge.

Significance: The findings of this study contribute to a deeper understanding of the importance of cost competitiveness, customer focus, and sustainability compliance in the automotive industry. It highlights the need for organisations to constantly monitor both qualitative and quantitative profit to avoid complacency and ensure long-term efficiency. The study’s insights are relevant to businesses operating in other sectors, as they face similar challenges in the VUCA market environment.

The current chapter proposes a theoretical framework to assess the sustainability of economic growth in the Gulf Cooperation Council (GCC) States. The authors integrate insights from endogenous growth models and consider the unique socioeconomic characteristics of the GCC region to provide a comprehensive and tailored approach to understanding the determinants of economic growth and formulating effective policy measures to foster sustainable development and growth. This chapter highlights the environmental challenges faced by GCC; based on this, the authors suggested indicators to construct a theoretical framework (Economic Growth, Climatic Indicators, Energy Indicators, Social Indicators, and Economic Resources Indicators). The authors propose that policymakers and researchers in GCC States should take these factors into account when devising policies or conducting research aimed at fostering sustainable economic growth. Overall, this chapter presents significant insights for policymakers, researchers, and stakeholders involved in promoting the sustainable economic advancement of the GCC States.