SELECT ATLEAST 5 DIFFERENT INDUSTRIES FROM UAE AND 5 DIFFERENT
INDUSTRIES FROM ANY OTHER GCC COUNTRY AND ANSWER THE FOLLOWING
QUESTIONS:
Question 1: (10% of total marks)
a. It is believed among the scholars that oil exporting countries could have different
behavior of oil prices, inflation, interest rate and money supply (any other factor)
towards various economic indicators. How?
Particularly with respect to your selected industries in selected countries, explain
the role of these factors in growth and development of each industry. How their
role can be different a non-oil exporting country? Explain.
b. Using time series data from 2000 till 2017 for money supply, oil prices, interest
rate and inflation (any other factor); answer the following questions:
i. Examine how money supply affects the inflation in your selected countries.
ii. Investigate the impact of oil prices, money supply, inflation and interest
rate on the share prices of each industry.
iii. Since oil is one of major factor in GCC, therefore examine its impact on
profitability of the selected industries.
c. Based on your results in part (b) above, discuss and justify the empirical findings.
In your discussion, include relevant literature focusing on the same variables and
relate them to your findings. Also rationalize your findings with respect to the
industries under focus.
d. Based on your analysis in part (c) above, identify the major economic issues
related to each industry, draw conclusion and provide recommendations to
further enhance the profitability of the selected industries.
Question 2: (6% of total marks)
a. Identify how VAT can affect the inflation in UAE and what monitory policy
measures can overcome such impact? How? Evaluate.
b. Based on Monetary Policies of UAE, discuss the interest rate, money supply, and
inflation trends.
c. How VAT can affect the real output and trade account of UAE? Discuss with
reasoning.
d. Is monopoly good or bad? How government can control through monopoly?
What factors cause the monopoly to grow and what is the role of government to
control such monopolies? What are the governmental polices towards monopoly
in your selected countries? Which of your selected industries have monopoly?
Why? Justify your responses with logical arguments.
e. How your selected countries overcome the issue of undesirable monopolies in
various sectors? Is this always a good idea to eliminate the monopolies? Why?
Disucss.
Question 3: (8% of total marks)
a. Why the structure of market competition varies across the industries? Across the
countries? What factors are crucial in identifying the market structure? How these
competitions can affect the economic growth of a country? Explain with respect
to your selected industries and selected countries.
b. How the fiscal and monetary policies of UAE and other selected country, can
promote the businesses in their economies? What response different industries
can show to any changes in these policies? Discuss with appropriate reasoning
from the literature.
Question 4: (6% of total marks)
a. What causes the industries to respond differently to various macroeconomic
factors like exchange rate, oil prices, interest rate, money supply and real output.
Does this response also vary across your selected countries? Why? Can a
change in these macroeconomic factors in one country affect the industries in
other country? How? Explain with justifications.
c. How elasticity of supply can affect the price a of product? How does it vary
across the selected industries? Identify the intensity of elasticity across your
selected industries. Also give reasons for differences in elasticity across the
countries.
d. What are the major factors affecting the growth and development of your
selected countries? Discuss them