International Business System and Growth

Question: Discuss about the International Business System and Growth. Answer: Introduction: The country that has been chosen in this aspect is Iran among the Middle East section of the world. The export and import of Irans oil has faced growth in a decreasing rate over the span of three years. The economy would infer a recovery when they could be approached with foreign capital inflows thereby restoring their frozen assets of US$100 billion. There could be a rise in the growth rate of the country from 3% to 6% ("Iran", 2017). Yet, the risk that has been associated with such a trade alliance to be formed with Iran is that, there might be a sudden fall in the price of oil that would offset the positive up gradation in the growth rate. The country has abundant energy sources available that helps the country to grow their economy in the long run. Yet, the country is accustomed to various issues regarding the employment opportunities. Due to the employment opportunities in the country, there would be a downfall in the standard of living of the people. The business climate in the country is not feasible in nature. OECD country credit grade of 6 and is not rated by three major ratings agencies. World Bank gives Iran a score of 118 out of 189 in the ease of doing business with the country ("Iran", 2017). The country underperforms in some of the categories associated to business. It scores quite poorly in the governance of world banks governance indicators. The country suffers through the issues of government mismanagement, inefficiencies and burden of regulating the environment. Reference Iran. (2017). Efic.gov.au. Retrieved 31 March 2017, from https://www.efic.gov.au/education-and-tools/country-profiles/middle-east/iran/