Abstract
The analysis is in the favor of the Qatar region as far as enhancing the export composition is concerned. This is also found from the analysis that the composition of goods have been changed exceptionally well from 1998 to 2014, and it has been analyzed accordingly in this entire analysis. It will be a perfect choice for the country to comply with such things in the future as well.
Introduction
The term economics have many faces and concepts, and every concept of economics is essential for the concerned authorities to get information regarding this particular concept. Adam Smith and Alfred Marshall are known as two of the most important economists and individuals that initiated the basic and core definition of the term economics.
According to the mutual consensus of these two authors, “The way or tendency to earning and consuming money in a perfect manner is known as Economics”. Major economies of the world are now utilizing and consuming the money in an organized and critical manner, and they are empowering the things on their own consequences as well. There are two important aspects that specifically deliver with the field of economics, known as Microeconomics and Macroeconomics.
The branch or part of economics specifically deals with the macroeconomic indicators and the entire economy of the country as a whole is known as Macroeconomics. It is really an important part of the economy to have effective macroeconomic indicators and its core implementation accordingly. The economies which are highly mobilize in terms of managing their economic consequences are the one who has the guts to prove their efficacy particularly (Anon, 2014).
In the net of Macroeconomics, there are certain factors with the name of Demand and Supply and other concepts. Apart from this, there are concepts which are very important in the economic consequences of an economy with the name of Imports and Exports. The major theme of this assignment revolves around the Imports and Exports of the Qatar region, and what consequences they left on the Gross Domestic Product (GDP) growth of the country. The assignment has been divided into numerous sections, and each of the section is important for the analysis.
Data and Analysis
Foreign Trade has now emerged as one of the closest things that associated with the financial and strategic position of an economy. The economic functions and operations are highly dependent upon this particular element of economics to form their economies to a perfect and organized level. The same aspect is highly effective and mobilizes for Qatar as well (Anon, 2014).
Qatar with an official name of State of Qatar is a sovereign Arab Country specifically located in the Western Asian region. It is located nearby the Arabian Peninsula. Most of the border of the country surrounded with Persian Gulf, while one corner of the border touches with the border of Saudi Arab. Qatar is a small country with a total population of 1.8 million people. Likewise, Dubai, Qatar is one of the perfect destinations available for the job seekers, wherein the level of expatriates is higher than that the actual citizens of the country. The country is enriching with Natural Gas and Crude Oil, due to which it is referred as one of the wealthiest nations of the world. Qatar is well known for its Conservative approach; in fact it is the 2nd most conservative region in the GCC after Saudi Arab.
In terms of economic function, Qatar is known as the world’s richest country in terms of GDP Per Capita Income with the highest human development index (HDI). The oil reserves of the country exceeds from 25 billion barrels. The recent action of gaining the FIFA World Cup 2022 will enlarge the positive economic consequences and attitude in their core future for their effectiveness. In the year 2014, the Gross Domestic Product (GDP) generated by the country was US$ 213.784 billion with per capita income of US$ 96,903 (Anon, 2014).
Foreign trade plays a vital role in the entire economic function of Qatar region, and Qatari Government is very effective and mobilizes as far as managing this particular fact in an organized manner. Foreign Trade has two different views in it known as Imports and Exports, and the composition of both of them changed a lot from 1998 to 2014. In this particular, it is required to analyze the same particularly. The amount of exports should be higher than the level of imports for a country, if they really wish to take the challenge in their hands. Before proceeding with the same, it is essential to get an idea about the major exporters of Qatar in the year 2010, to have a look that which economies are standing united with Qatar.
This is clear from the analysis that Japan is the largest exporters of goods export from the Qatar region, with a total proportion of 29.4% of the total goods exported from the country. It means that the foreign policies and political behaviors of Qatar is effective and polarized with the Japanese region, which is a great sign of effectiveness for the Qatar region, as Japan is one of the largest economies of the world, and the largest economy of the Asian region (Anon, 2014).
Apart from Japan, there are other Asian countries as well which associated with the export oriented functions with Qatar region, like South Korean India and Singapore. The proportions of these three countries in terms of export are 16.5%, 8.7% and 7.8% respectively. These regions are relatively cheaper than that of the Western region, wherein the prices of exports are high. United Arab Emirates which is a counterpart of the country is also a big exporter of the Qatar region with a major proportion of 5.1%. European countries have a low proportion of exports with the Qatar region, like United Kingdom and Spain, which has a major proportion of 4.8% and 4.4% respectively to each other (Anon, 2014). The commodity which are majorly exported in the aforementioned countries are as follows
It is clear from this particular table and chart that LNG and CRUDE Oil are two important necessities that required in the Qatari region in a high proportion. This particular aspect is in the favor of the country, as Qatar is one of the Oil and Gas rich regions of the world, and they exporting to other countries as well for their economic consequences. The proportion of exports of LNG and Crude Oil are 32.2% and 27.8% respectively. CONDENSTATE and LIQUIDIFIED PROPANE are some important element that lies in high proportion of the country in terms of exporting in different regions of the world proportionate to a level of 16.2% and 4.7% respectively (Anon, 2014).
In terms of Imports, the major counter part of Qatar region from the financial year 2006 to 2010 was Japan, China, United States, Germany and Italy. The total value of imports in the Qatar region during the financial year 2010 was Qatari Riyal (QR) 84,593 million, which is extremely high as compared to any other region of the world. Qatari region has a great control on their imports and exports value, as they have an idea that, if the account of imports would be on a higher range then it will certainly affect over the account deficit problems in particular and so on (Anon, 2014).
In terms of Composition of Imports and Exports, all of the data has been collected through the official website of Ministry of Development Planning and Statistics of Qatar region, and all of the data is essential for the entire economic effectiveness and growth of the country with a positive and effective attitude. The composition of goods will be bifurcated into two sections in this part, which will be imports and exports. While the data collected for the same analysis will cover 16 years.
Export Orientation
The term export means to ship the goods and services out of a certain port of a country to a different country. The seller who sells such goods known as exporter and buyer is known as Importer. It is one of the trendiest and effective things that associated with the operations of the economic consequences of a country. Export is a major element of Foreign Trade, and no economy can get the things in the right manner without having high amount of export orientations particularly. Export is the only element that analyzes and computes the slogan of account deficit or Surplus. A country with high number of exports than its imports known as a perfect and valuable economy in terms of providing effective economic effects to them (Tradingeconomics.com, 2014)
In this way, the account balance would be in surplus, because the flow of funds and cash flow is coming towards the country, which will also increase the stance of Foreign Direct Investment (FDI). The composition of exports of Qatar region from 1998 to 2014 is as follows (Tradingeconomics.com, 2014)
This particular table and graph is manifesting that the level of exports of Qatar has been increasing with a substantial amount of percentages from 1998 to 2014, which is showing that the country is gaining continuous advantages from number of years. It can be clearly seen that the amount of Export is very low from the year 998 to 2005, because Qatar was not among the most effective and happiest countries and economies of the world. However, after that period, the level of export increased heavily for the country. One of the best things associated with the country is their current power and strategic well being to deliver the best economic function in the town. The export oriented figures of Qatar increased even at the time of current economic crisis that was initiated in the financial year 2007 to 2009. In the year 2008, the increment in the export composition of the country was nearly 100%, showing a great tendency of the country in terms of managing their trading operations. From the year 2010 till 2014, the export figures of Qatar have been increasing with a substantial amount of percentages. In the year 2010, it increased by 66.67%, and then increased for four consecutive years by 3.33%, 93.54%, 12.5% and 2.22% for the years 2011, 2012, 2013 and 2014 respectively. The composition lies in the favor of the company country, and showing that the power of export increases for them in the future (Tradingeconomics.com, 2014).
Import Orientation
Conversely to Exports, there is a name of Imports as well. An Import is known as a Good brought into a sort of jurisdiction, especially across a national border from an external base source. The party that brining the goods is known as an Importer and it is equally beneficial for the economic function of a country. For the best possible economic consequences, the level of important should be place on a lower level; otherwise it will bring ineffective consequences for an economy. An economy wherein the level of composition of imports is high, current account provision would be in deficit for that country. The import composition and orientation of Qatar from 1998 to 2014 is as follows
This particular analysis is revealing that the imports are increasing perfectly. The important composition of the country decreased heavily by 40% in the year 2007, and then increased by nearly 284% in the year 2008. This particular analysis is in the favor of the country (Tradingeconomics.com, 2014). However, special consideration will be analyze through the current account to GDP ratio
Current Account to GDP
Current Account is basically a difference among the exports and imports. The rate of Current Account to GDP is the rate which is ineffective for the country. The economies which are high in terms of current account to GDP in particular, then it will be essential for the economies in particular. The current account to GDP of Qatar is as follows
Discussion of Results
This particular section of this assignment associated with the discussion of all the results which have been computed in the aforementioned part. First of all the result which has been found in the aforementioned thing is showing that Japan has the highest proportion of 29.4% in the total exports of the country, which is showing that the country has a great trading policy with them, and they should comply with the same (Tradingeconomics.com, 2014).
In terms of the composition of exports, it is evaluated from the analysis that the export function of the country lies in a perfect region. The average export quantity in the 16 years of operations is QR 45,878 million that shows a high figure for the country. It is a sign of effectiveness for the country, as it will lead to increase the economic consequences in a perfect manner. The average growth percentage of exports is 18%, which is an indemnity that the exports of the country are increasing tremendously well, and in the favor of enhancing the strategic and financial value of the country in a positive and effective node (Tradingeconomics.com, 2014).
On the other hand, the analysis of the imports composition of Qatar shows that the imports of the country have increased relatively at a higher speed as compared to the exports. The average value of the total imports of the country is QR 12,406 million, while the increment of imports in these 16 years of operation is 28%. Though, the sign of export is looking relatively weaker than Imports for Qatar, however it didn’t underestimate the earning potential of the country from any sort of angle. However, the export of the country is still higher than the level of Import particularly. The current account to GDP ratio of the country on average is 18%, which is in the positive term, and showing effectiveness to the country in terms of managing their core operations and effectiveness for a certain time period.
Conclusion
Economic consequences are very important for the sake of an economy, and the variables that will be in the analytical vision are most of macroeconomic variables. There are certainly variables of macroeconomic that specifically associated with the long run sustainability of an economy, and among those variables there is a name of Export and Import Composition as well.
There are certain economies that worked wonderfully well during the current economic crisis and emerged like wonders later on, and among these economies the name of Qatar is one of them. Qatar has now emerged as the richest country of the world in terms of GDP per capita, and it is expecting to grow rapidly in the near future, subjected to the current effective earnings of the country. The entire analysis reveals that the composition of goods traded has been changed dramatically in the Qatar region from 1998 to 2014, and it has been examined in the export and import compositions as well. It is also found from this particular part that it shall remain like the same for the country for their future betterment and development.
References
(2014). Retrieved 17 December 2014, from http://www.qsa.gov.qa/eng/publication/economic_publication/2012/Qatar%20Economic%20Statistics%20at%20Glance.pdf
Tradingeconomics.com,. (2014). Qatar Current Account to GDP | 1980-2014 | Data | Chart | Calendar. Retrieved 17 December 2014, from http://www.tradingeconomics.com/qatar/current-account-to-gdp
Tradingeconomics.com,. (2014). Qatar Exports | 2004-2014 | Data | Chart | Calendar | Forecast | News. Retrieved 17 December 2014, from http://www.tradingeconomics.com/qatar/exports
Tradingeconomics.com,. (2014). Qatar Imports | 2004-2014 | Data | Chart | Calendar | Forecast | News. Retrieved 17 December 2014, from http://www.tradingeconomics.com/qatar/imports
