The Reasons Behind Exporting Cars To Dubai From The US
A huge percentage of the world's population has a dream of visiting the United States. The perception is that the USA everything that is produced or exported from the USA is of a superior quality. This obviously applies to cars. But, the question that arises, is this perception enough to justify the exponential increase in cars being exported to Dubai (small Middle Eastern sheikhdom), or is there supporting factors.
In a questionnaire collected from Dubai citizens studying at US based universities, the initial conclusion is that overall mechanical labor significantly costs less in Dubai when compared the US. This results in less cost to fixing mechanical problems. This confuses the puzzle, but with more in-depth interviews, the finding was that mechanic shops charging average labor rate lake quality. On the contradictory, the quality of dealership mechanical work matches its apposing at the US, however charges up to two times of it’s apposing at the US. Cars in Dubai are more often maintained by low quality shops; this strengthens the perception that two cars with identical miles, one driven on American roads, and other driven on Dubai Roads, the one driven in America would be of a much better quality.
However, more justifications were need to justify the increase. Further research lead to that Dubai is one of the fastest-growing, flashiest and most multi-ethnic cities in the world. It is a city that welcomes anyone whose intention is to make money. Moreover, Dubai Statistics Department announced that 2006 witnessed a sharp increase in the population, and an energetic development in every sector. About 292,000 become Dubai residents in 2006, increasing the population by 21 percent.
Furthermore, the department also revealed that about 212 thousands vehicles were registered for the first time in the 2006. This was considered an alarming number, which was thought to shift the equilibrium in the car market. This is where US based car dealers got on track to shipping cars towards Dubai. The shipments were generated by requests from Dubai local dealers.
To conclude, the current economic boom Dubai us witnessing was initiated in 2000. In 2005 started to spread the boom to other parts of the Middle East. Currently Doha and Abu Dhabi are the cities benefiting from the wave of investment and development. It is important for US car dealers to capture on this growth supported by the globalized world market, and the efficient supply chain management. It is predicted that the economic boom will at least last until the end of the current US presidency period. The US economic policy will not change much until the next President has been elected to the White House. It is likely that we are witnessing a generational change in global wealth pattern, and that could provide evidence extremely durable for the Arabian gulf countries of the Middle East.
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