Swot Analysis Of Country Oman Finance Essay - Free Essay Example

Sample details Pages: 31 Words: 9187 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The UAE has achieved stable progress over the past three decades to emerge as a important global player in both the  political and the economic position The tremendously fast rate of economic growth until 2008 was due to the constant demand  for oil, in addition they a move their focus to a number of non-oil sectors. The UAE had maintains a dynamic political ties up with over  60 countries, mainly in Europe and Asia. The UAE is considered to be one of the foremost political forces in the Middle  East and is a member of a number of regional organizations, including the Gulf Cooperation Council (GCC), the Arab  union and the Organization of the Islamic Conference. Don’t waste time! Our writers will create an original "Swot Analysis Of Country Oman Finance Essay" essay for you Create order Under the control of former President Sheikh Zayed, the UAE transformed from a nation of large-scale poverty  to a highly developed and wealthy country. With the death of Zayed in 2004, his son, Sheikh Khalifa, immediately took  over as president. Although the government structure in the UAE is not democratic, both Zayed and Khalifa have  bear the responsibility of retain the countrys development. The government has constantly received appreciation  for its efforts to creating business opportunities in Oman. The countrys tax rule is also considered among  the best in the world for businesses. The UAE market is capable to with a well-built telecommunication network and, as a  result, the countrys IT market is slowly becoming competitive. However, the level of science education remains low. The  country has a strong integrated environmental development program. Its ecological procedures are integrated with the  Environmental Im pact Assessment (EIA) program, which is part of business practice in the UAE. PESTEL ANALYSIS OF OMAN COUNTRY https://www.free-power-point-templates.com/articles/wp-content/uploads/2012/08/pest-diagram-ppt-template-543450.jpg (Sources: www.google.com) INTRODUCTION PESTEL stands for Political, Economical, Social, Technological, Environmental and Legal. It is used to describe an analysis that determines the opportunities and risks of global growth. It is also termed as a PEST or PESTLE analysis. Political, Economical, Social, Technological, Environmental and Legal issues differ from one country to another. As a company looks to influence the advantages that the democratization of technology, information and finance, and grow beyond the national borders that previously controlled them, it is necessary that they consider a PESTEL analysis to accompany their SWOT analysis. The PESTEL analysis provides a strong outline which is used by global and multinational firm to set the stage to develop specific strategy to ease the risks involved in carry out their vision in new environments. This PEST country analysis report on Oman provides a holistic view of the country, with understanding analysis of current and future issues, supplemented with significant quantitative data to support trend analysis. FEATURES AND BENEFITS Following are benefit that business will gain if they implement pestle analysis in their planning process: Useful to know political environment: It is helpful to understand the political system in Oman through examination of key factors in the country and governance indicators. Useful to know economic situation: It is useful to understand the economic situation in Oman through a balanced evaluation of core macroeconomic matter. Useful to know demographics analysis: To understand the customer demographics in Oman through analysis of income distribution and the rural-urban split, as well as healthcare and education. Use to evaluate technology advancement: It is use to evaluate the technological background in Oman through analysis of related laws and policies, as well as patent data. Useful for controlling changes: By making effective use of PEST Analysis, it makes sure that it has united positively with the forces of change that are affecting the world. Good use of PEST Analysis helps to avoid taking action that is meant to failure for reasons beyond control. Helpful to know about new country or region: PEST is useful when we are start operating in a new country or region. Use of PEST Analysis helps to break free of lifeless assumptions, and helps to quickly adapt the reality of the new environment. HIGHLIGHTS The political landscape section discusses the evolution of the political scenario in Oman, as well as the countrys economic, social, foreign, and defence policies. The section also discusses the countrys performance according to World Bank Governance Indicators. The economic landscape section outlines the evolution of Omans economy, as well as the countrys performance in terms of GDP growth, composition by sector (agriculture, industry, and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector, and employment. The social landscape section analyzes the governments social welfare policies, as well as the countrys performance in terms of healthcare, income distribution, and education. REASON TO USE PESTLE SWOT ANALYSIS Following are the main reason for using pestle swot: Useful to formulate goal: Strategic management is an essential aspect of managing modern businesses that involves forming goals and implements the programs that fulfil those goals. Useful to intact environmental scanning: Environmental scanning is a component of strategic management where mangers study various economic, political and social factors that might affect the business. It is helpful to small business also: It can help small businesses to identify intact markets and avoid costly mistakes. Small businesses can better compete by using these critical tools to assess opportunities and challenges. It is useful to manager for conducting an effective business: SWOT analysis and PESTLE analysis are two common strategic management equipment that the help managers brainstorm and organize their ideas during the environmental scanning process. It is broad wider concept: A main reason companies use both SWOT and PESTLE is because these tools offer broad and efficient analyses of key areas of a strategic plan. SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats. PESTLE has wider coverage of business and external issues, including political, economic, social, technological, legal and environmental factors. POLITICAL ENVIRONMENT IN OMAN https://www.oxberryrisk.com/Images/political_risk_analysis.jpg INTRODUCTION OF THE SECTOR The stability and structure of a countrys government gives a basis to understand future changes in the regions political environment. Policy at the local or federal level can differ significantly. Political power in Oman is dominated by Sultan Qaboos ibn Said Al Said who is responsible for all major decision-making and government actions. Decision-making authority rests with the Sultan with contribution from his advisors, the appointed Majlis al-Dawla and members of Omans leading merchant families. Succession is a key risk concern. Sultan Qaboos has dedicated himself for promoting the countrys reconstruction, economic diversification as well as continued political stability. A process of limited elected reform has been in progress over the last several years including the introduction of direct elections for members of the counselling assembly in 2000 and universal suffrage in 2003. In recent October 2007 elections, Oman records a strong 68% voter turnout. While Oman is graduall y moving forward on political liberalization efforts, the Councils role remains largely advisory. Following is the political structure of Oman country: POLITICAL STRUCTURE MONARCHY Head of State Sultan Qaboos bin Said Al-Bu S aid Council of Ministers Composed of  the Sultans Advisors State Council (Majlis al-Dawla) 57 Appointed tribal and religious leaders Consultative Council (Majlis al-Shura) 84 member Elected body with advisory functions Major Parties Illegal Last Elections Consultative Council October 2011 THE MONARCHY The Sultan is a direct heir of Said bin Sultan, who had first opened relations with the  United States  in 1833. The Sultanate is neither political parties nor governing body, although the bicameral representative bodies provide the government with advice. The present Sultan has no direct heir, and has not publicly selected a successor. Instead, the ruling family should generally select a new Sultan after his death. If they do not select a new ruler after three days, then they open a letter left to them by the late Sultan, containing a proposal for a new Sultan. Current Sultan of Oman, Majesty Sultan  Qaboos  bin Said Al Bu Said holds an unexpected amount of power. Along with his position as Sultan, he is prime minister, defence minister, finance minister, foreign affairs minister and chair of the central bank. Moreover, Qaboos has only a few family members in his cabinet and the offices they hold are considered quite powerless. His cousin Hay him for example, is minister of national legacy and culture while his uncle, Shabib is special advisor for environmental affairs. This style of control has suggestion as none of his family members have gained the necessary managerial skills to rule Oman after Qaboos death. JUDICIAL SYSTEM The court system in Oman is regulated by Royal Decree 90/99. There are three court levels in Oman; the Elementary Court is the lowest court, followed by the Court of Appeal, and then the Supreme Court as the highest court in the country. In addition to this there is an Administrative Court that looks into cases made against the government. GOVERNMENT ATTITUDE TOWARDS FDI The government keenly support foreign direct investment into the country to increased employment opportunities for Omanis. Omanisation allowance are currently in force for six industries in the private sector, i.e. the transport, storage and communications sector at 60%,finance, insurance and real estate at 45% and industry at 35%. Authorities created the Omani Centre for Investment Promotion and Export Development (OCIPED) in 1997 with the aim of providing foreign investors with a one-stop-shop for licensing and registration procedures. Judicial transformation is in progress and the court system is considered largely fair. Corruption level are low by regional standards and do not act as a significant obstacle to foreign investment. LAND OWNERSHIP In Oman the regulation for land are expected to be less because the minister wants to increases the opportunity for tourism. The Ministry of Housing, Electricity and Water may grant permission to a company or a foreign national the Right to use a certain property for operations that promote the economic development of Oman. INCENTIVES Government incentives to promote local and foreign investment include tax exemptions; the provision of industrial plots in industrial zones for nominal charges; preference in the allocation of government land; interest-free or subsidized loans with longer terms for repayment; reduced charges for water, electricity and fuel; financial assistance for the development of economic and technical possibility studies; and the accelerate arrangement of immigration visas and permits for foreign workers. GOVERNMENT REGULATIONS AND POLICIES A foreign national desire to engage in a trade or business in Oman or to acquire an interest in the capital of an Omani company must obtain a license from the Ministry of Commerce and Industry. In general, the ministry grants a license if the paid-up capital of the Omani company in which the investment is made is at least Rs 150,000 (US$ 390,000) and if the foreign ownership of the company does not exceed 49%. The Social Security Law requires private-sector employers and their Omani employees to pay monthly contributions to an insurance fund for old age, disability and death benefits. Oman does not impose personal income tax. Income tax is levied on people that are wholly owned by Omani nationals, entities with foreign participation, branches of foreign companies and Omani sole proprietorships. All companies incorporated in Oman irrespective of the extent of foreign ownership and branches of companies registered in the other member states of the Gulf Co-operation Council (Bahrain, Qatar, Kuwait, Saudi Arabia and the United Arab Emirates) are taxed at a rate of 12%, for income exceeding RO 30,000. A single tax rate applies to branches of foreign companies, at rates ranging from 0% to 30%. Petroleum companies are subject to tax under specific provisions and rates. Omani sole proprietorships are taxed at a rate of 12%.The Omani Labour Law requires employers to pay end-of-service benefits to expatriate employees. FOREIGN INVESTMENT With the exemption of certain restrictions on the foreign-currency holdings of  commercial banks, Oman does not impose exchange controls. In general, Oman does not restrict the transfer of funds overseas of equity or debt capital, interest, dividends, branch profits, royalties, management and technical service fees, and personal savings. RESTRICTIONS ON FOREIGN INVESTMENT The Foreign Capital Investment Law (Royal Decree No. 102 of 1994) governs foreign investment in Oman. If the foreign body want to invest in Omani companies they must file applications for licenses with the Ministry of  Commerce and Industry. The ministry grants licenses to applicants if   both of the following conditions apply: The paid-up capital of the Omani company in which the investment is made is at least Rs.1, 50, 000(US$390,000). The foreign ownership of the company does not exceed 49%.The Ministry may exempt the following entities from the licensing conditions : Companies conducting business through special contracts or agreements with the government; Companies established by Royal Decree; and Parties conducting a business that the Council of Ministers declares necessary to the country. TAX EXEMPTIONS In Oman tax is exempted from corporate tax and customs duty which may be granted by the Ministry of Finance. From the following activities tax is exempted such as manufacturing, mining, agriculture, fishing, fish farming, fish processing, aquaculture, animal breeding, tourism, the export of manufactured and reprocessed products, operation of colleges, universities, and higher education institutes, private schools, training institutes, private hospitals and public utilities. Exemptions are granted for five year periods effective from the date when production begins or services are first rendered; a five year extension may be granted. .Management agreements and construction contracts do not qualify for tax exemptions. Companies engaged in the activities listed above may also obtain an exemption from the payment of customs duty on exports and on imports of equipment, spare parts and raw materials. IMPORTING The import of goods into Oman requires an import license. The import of  certain classes of goods, including alcohol, firearms and explosives, requires a special import license. Goods entering Oman must have certificates of origin. Oman follows Arab boycott rules, which forbid the import of goods originating from Israel. EXPORTS Oman does not restrict exports. However, the export of items of historical value requires an export license. CUSTOMS DUTIES In Oman most imported goods are subject to pay customs duty at a flat rate of 5% on their cost-insurance freight (CIF) value. Consumer goods, including food substance are exempt from customs duty whereas alcohol and tobacco are subject to pay higher rates of duty. Goods produced within the GCC generally may be imported duty-free. In certain circumstances, Oman may allow the contractors to import duty-free equipment and materials for use the on government, PDO and OLNG projects. Since from 2005 Oman has entered into a Free Trade Agreement with the United States of  America. POWER ON THE TOURISM SECTOR The government promote foreign contribution to develop the country tourism industry. Since the mid-1980s, the government has gradually opened its desert, mountains and coastlines to foreign tourists and the Ministry of Tourism has share part in various international tourism exhibitions to introduce Oman to the world tourist trade. Due to recent changes made in visa a regulation that had increases arrival of a large number of populations which in turn are likely to increase the flow of  tourists in Oman. Due to the development of International Airport which increase the tourist probable of the country. A new Tourism Ministry was set up in 2004 to provide push to this sector. The Ministry of Tourism has free provisional tourist arrivals figures for 2011. These showed a slight decline of 1.8% in arrivals over the year to 1,427,611. In light of this to some extent unsatisfactory figure, BMI has change down its predict for tourist arrivals in 2012, believe that an increase of 10% is now the most likely outcome for the year, down from 15% previously. BMIs predict is in line with the governments outlook for the industry. ECONOMIC ENVIRONMENT https://t2.gstatic.com/images?q=tbn:ANd9GcQnKP8I_IH7yqQSamEgMPjoj-OcN1qkxFY8WKYN5xiM_sYx59qBHwTwJjP3 (Sources: www.google.com) INTRODUCTION OF THE SECTOR Omans economy is based mainly on petroleum and natural gas. With limited energy reserves, Oman has decided to expand its economy away from oil and gas production. The Oman Vision 2020 development plan highlighted the need for the Omani economy to expand its economy through a process of  industrialization and privatization. The main single industrial investment target is the port city of Sohar, near the UAE border. The government has direct with several main privatization programs, including power generation projects, and other power and water generation plan. Oman expects to triple the industrys one percent contribution to GDP and finally create over 1, 14,000 tourism-related jobs. Besides these the government had built a second airstrip and new terminal at Muscat International Airport by 2011. The government is also in the procedure of expanding its privatization efforts to its wastewater and solid waste management operation. In addition to this the Omanis aggressively m arketing itself as a enchanting, environmentally aware tourist goal. The Omani government is developing a port at Duqm, an evenly populated area along the Arabian Sea. This strategy call for the construction of a dry dock facility, oil refinery, petrochemicals complex and fish processing centre to ultimately fight with Dubais Jebel Ali port complex. The Duqm development plan also calls for the construction of an airport to facilitate passenger and cargo shipments and a three-hotel tourism resort complex. MACRO ECONOMIC DATA Following is the macro data of Oman country. YEAR 2005 2006 2007 2008 2009 2010 2011 GDP Normal GDP 309.5 36,804 4,198 60,299 46,115 56,251 61,840 Real GDP 4.0 5.5 6.8 12.8 2.0 3.6 3.8 Origin of GDP Agriculture -2.9 -4.6 4.6 0.5 1.5 1.6 1.6 Industry 5.6 -1.7 3.6 11.9 0.3 3.8 3.9 Services 6.7 12.2 9.5 1.3 1.2 3.4 3.7 Population income Population 2.5 2.6 2.7 2.9 3.2 3.3 3.4 GDP per head 20,396 21,639 22,360 24,629 22,960 23,151 23,440 Fiscal indicators Govt. Indicators 38.0 35.2 36.7 32.9 38.1 36.3 34.0 Govt. Expenditure 35.4 34.9 36.5 32.6 41.9 37.1 35.0 Govt. Balance 2.5 0.3 0.2 0.4 (3.8) (0.8) (1.0) Net public debt 4.9 3.8 3.1 2.5 5.5 4.5 4.1 Prices financial indicators Consumer prices (average, %) N/A N/A N/A N/A N/A N/A N/A Lending interest rate (average %) 7. 1 7.4 7.3 7.1 7.4 6.8 6.9 (Sources: GCC construction fact sheet) GROWTH RATE GROWTH RATE AMOUNT GDP ( APPROX) $59.946billion PER  CAPITA GDP (APPROX.) $21,646 REAL GDP GROWTH RATE (APPROX.): 7.8% The government is looking to expand the economy beyond the hydrocarbon sector, which still account for about 75% of export earnings, given the limited sector possible to force and maintain growth beyond 2020. Foreign investment maintain of natural gas projects, along with the government investments will sustain growth. Oil prices natural gas represents a small proportion of GDP and export revenues. To this end, the government is shifting its plan to aim renewable energy as a key developmental goal with hope that it will contribute about 30% of GDP by 2020. PURCHASING POWER G:images omanOman-50Rials-f.jpg (Sources: www.google.com) The inflation rate for the year ended 2010 was about 4%. This was the outcome of declining crude oil prices. The oil and natural gas being the core business of  Omanis it play an important role in determine the per capita income and their purchasing power. However, the situation is changing. There is gradual boom in the per capita income.  The period of rapid growth has come to an end, and in the absence of a sharp recovery in oil prices Oman looks set to grow in the 3-4% range over the coming 5-10 years. The cost of living in Oman is high as most of the goods are imported. MINERAL RESOURCES https://www.omanet.om/arabic/economic/images/9-9.jpg Omans mineral resources include chromite, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt, and iron. Several industries have grown up around them as part of the national development process which, in turn, has boosted the minerals sectors contribution to the nations GDP as well as providing jobs for Omanis. The mineral sectors operations include mining and quarrying, with several projects recently completed, including: an economic feasibility study on silica ore in Wadi Buwa and Abutan in the Wusta Region, which confirmed that there were exploitable reserves of around 28 million tonnes at the two sites; a feasibility study on the production of magnesium metal from dolomite ore; a draft study on processing limestone derivatives; a project to produce geological maps of the Sharqiyah Region; economic feasibility studies on the exploitation of gold and copper ores in the Ghaizeen area; a study on raw materials in the wilayats of Duqm and Sur for use in the Sultanates cement industry; and a study on the construction of a new minerals laboratory at Ghala in the Governorate of Muscat. Metkore Alloys will build a world-class 1,65,000 tonnes per annum capacity ferro chrome smelter project in Oman with an envisaged investment of $80 million. SOURCE OF FUNDS AND THEIR COST Oman commercial banks are the primary source of short, medium, and long-term credit. Because there is no restriction in obtaining credit in Oman they can also obtain credit from commercial banks in the neighbouring Gulf countries. The Oman Development Bank they grant loans to small and medium-size companies, for less than Rs.2,50,000. Investors also obtain financing from the Gulf Investment Corporation located in Kuwait which is established by the GCC, is a major financial institution whose main purpose is to invest in the equity and provide loan funding to the new companies. SECURITIES MARKET The Capital Market Authority in Oman is established in 1998 which regulates the securities market. Muscat Securities Market, which began its operations in 1989, over sees the flow of funds into securities and develops the local financial market. Membership in the exchange is compulsory for Omani licensed banks, specialized loan institutions, authorized financial intermediaries, joint stock companies and Omani public authorities whose shares are registered on the securities market.   Commercial banks, joint stock investment and brokerage companies which is registered in Oman they may establish investment funds called joint investment accounts. The accounts are listed on the Muscat Securities Market and may be up to 49% foreign-owned these funds are exempt from taxation. INFRASTRUCTURE AND PHYSICAL FACILITIES The Omani government is developing a port at Duqm, which is a less populated area along the Arabian Sea. This plans call for the construction of a dry dock facility, oil refinery, petrochemicals complex and fish processing centre to eventually fight with Dubais Jebel Ali port complex. The plan also calls for the construction of an airport to facilitate passenger and cargo shipments and a three-hotel tourism resort complex. . Oman is focusing on its port infrastructure as well. Two of Omans principal ports, Sohar and Salalah, are aggressively moving forward on expansion of  their respective. To increases the tourism facilities the government will build a second runway and much-needed new terminal at Muscat International Airport in 2011, they also built a new taxiway at Salalah Airport in 2010, and new airports at Sohar, Ras al-Hadd, and Duqm. Oman is focusing on its port infrastructure as well. Two of Omans prime ports, Sohar and Salalah, are aggressively moving forward on ex pansion of  their respective.. Oman is focusing on its port infrastructure as well. SIZE OF MARKET In 2002, Oman attracted some 1.2 million foreign visitors; about 7,00,000 came from the GCC (GULF CO-OPERTION COUNCIL) states. And of those700, 000 tourists, an overwhelming 85 percent of them came from the UAE. For all the talk in Muscat and Salalah about bringing in European tourists, the fact remains that the bulk of the sultanates visitors come from a lot closer to home- and, of those, huge numbers are simply driving across the border for a very short-term stay. Oman has so much more to offer than the other Gulf States in terms of  culture and history. Oman offers an real Arabian experience thats not easily available elsewhere in the region. TRADE: https://www.omanet.om/arabic/economic/images/tra03.jpg (Sources: www.Omannet.Om) The Omanis have been trader since ancient times. Their transport and group carried Omani goods including frankincense, dates and limes across the seas and over the old frankincense and silk routes, encourage cultural interactions with other peoples. Today, Oman is a part of a number of economic communities including the Arab Gulf Co- operation Council (AGCC), the Greater Arab Free Trade Zone, the Indian Ocean Rim Association for Regional Cooperation (IORARC) and the World Trade Organisation (WTO). The Sultanate has raised its laws on investment activity and has begun One Stop Shop permission facilities along with easy, transparent procedures. There is protected coordination between the bodies and authorities involved in providing services for investors, while current progress towards the establishment of e-government have led to a growing confidence on electronic channels. Commercial laws and regulations are being modernized, including the Law on Trade Marks, Descriptions, Trade Secrets and Protection against Unfair Competition, the regulation of foreign trade representation offices, the Consumer Protection Law and the Law on the Protection of Intellectual Property. Beside these measures, the country has also raised its ports and established free trade zones in all Mazyounah and Salalah. Omani goods are exported to the markets to world countries. Government authorities and departments give main concern to Omani products when making purchases and Omani goods are actively promoted in the local market through seminars and exhibitions. Broader promotion campaigns are also held in the regional and world markets, where Omani products have already begun to make their mark because of their high quality specifications. The Ministry of Commerce and Industry has established a certificate by the United Kingdoms Human Investment Programme, recognizing it as an investor in human resources. SOCIO-CULTURAL ENVIRONMENT https://www.secs.unibo.it/NR/rdonlyres/3611A3BD-7B6B-4531-8AAF-181E56EBA9CE/177588/Fotolia_895776_Ometti2Cerchi.jpg (Sources: www.google.com) INTRODUCTION OF THE SECTOR Since Oman is a Muslim country, all the activities are influenced by the Muslim culture. The main characteristic of Omani culture is respect for others and it prevents others from letting their face down. In Oman the foreigners have to make sure that they dont make any unpleasant remarks in the public places. Otherwise they feel insulted and let down in the society. Language: In Oman country Arabic is local language. LIFE STYLE OF THE OMANIS: Following are key factors that determine the living style of the population in Oman. CULTURE: In order to fully understand any country culture, is very important to know because it influence society whole. In Oman Islam culture is followed by every people. Oman is the Muslim country so majority of them follows Ibrahim sect it is very conservative culture. Islam directs every part of a Muslim life, from holidays to the food they eat to how they dress and do business. Kindness, humility and respect for others are key thought which are present in both social and professional field of life. ART: Traditional handicraft such as silver and gold jewelry, goat- and camel-hair carpet, woven baskets, water jugs, weapon and khanjar, a special type of dagger etc are generally practiced in this country. Besides these, drawing, painting, photography etc are also practiced. MUSIC: Music in Oman is a vital part of art. The traditional folk songs are very popular and practiced in the country. Arabic music has left a deep influence in the Oman music. Health: Life expectancy at birth in Oman is approximate to be 74.47 years in 2012. As of 1999, there were an approximate 1.3 physicians and 2.2 hospital beds per 1,000 people. In 1993, 89% of the population had access to health care services. In 2000, 99% of the population had access to health care services. During the last three decades, the Oman health care system has established and account great achievements in health care services and preventive and curative medicine. In 2001, Oman was ranked number 8 by the World Health Organization. HOSPITALITY:   Omanis are well-known for their significant hospitality and kindness in both social and professional outlook. In Oman the guest are welcome with a variety of traditions and ritual way, the most important of which is the serving of coffee, orkahwa. Omani kindness is closely connected to their desire to establish trust and build relationships with people before doing business. Because of theses friendly climate foreigners show their appreciation for their generosity and spend time getting acquainted with their Omani business complement. FACE: Dignity and respect are key elements in Omani culture, preserved mainly by the concept of saving face. The Omanis are very compromise, patience and self-control in nature so that avoid the embarrassing or putting others down so as prevent them from losing face. Because of this nature of Omanis public criticisms are rare. When doing business with Omanis it is important to remember this and avoid doing anything which might offend them or make them look bad in front of others. FAMILY: Omani culture places a high significance on family and ethnic relations. In Oman the family and ethnic group play important a role in shaping a person values and behaviour. Loyalty is very important among people even in a business situation also where it is not rare to have several members of one family working for the same company. COST OF LIVING: Because Oman imports most of its goods, the country cost of living is comparatively high. BUSINESS HOURS: The business week is from Saturday through Thursday morning. In Oman Friday is usually a day of rest, although certain shops may be open for restricted hours. During Ramadan, the holy month of fasting, business hours are restricted. SOCIAL AND BUSINESS CUSTOMS: Oman is a dedicated Muslim country, and its local customs should be respected. In Oman dress is usually very conservative; it should cover the shoulders and the tops of  the arms, and should extend to below the knees. Photographing individuals, particularly women, is often outlook with disapproval; therefore, permission to take photographs should always be required. Due to the misuse or abuse of  alcohol may cause offense; alcohol should not be consumed in public places, unless these places are licensed to serve alcohol. During the holy month of  Ramadan, in Oman Muslims fast from sunrise until sunset. Eating, drinking or smoking in public places during daylight hours is not allowed. All non-Muslims in the presence or sight of a Muslim should avoid these activities during the period of the fast. ATTITUDE: In Omanis people attitudes towards time are much more comfortable than in many Western cultures. In Oman people and relationships are more important than schedules and punctuality. It is not uncommon, therefore, for Omanis to arrive late but foreigners are expected to arrive on time. Meetings should be scheduled in advance and confirmed a few days prior. Meetings are often cancelled or rescheduled however with little notice so always come prepared with a business card or letter to leave to let them know you were there. EDUCATION AMONG THE OMANIS: Although schooling is not compulsory, education is now almost universal. Oman offers primary, secondary and single-sex schools throughout the country, except in remote villages. At the end of 2002, Oman had 1,019government schools with 2, 98,000 male and 2, 80,000 female students and18, 538 teachers; by contrast, in 1970, Oman had three boys schools with 909 students and 30teachers. To improve its educational system, the government accord main concern to educating Omanis to become teachers. In 1986, Sultan Qaboos University was established in 2002, around 12,000 students were enrolled, 50% of whom were female. In 1993, the College of  Commerce and Economics was established and the College of Law and Shari was established in 1997. Oman run technical and industrial colleges, teacher-training colleges, vocational training centres, an Institute of Health Science, an Institute of Banking and Financial Studies and several private colleges for engineering, commerce and business management. The government offers adult education to improve general literacy and to improve the written and spoken Arabic language skills of Omanis. The Sultanate is focusing on education as a means to rapidly change the country from a traditional agrarian society to an active participant to modern global economy. The Sultanate recognises the importance of  women education in the nation-building process. FOOD: https://www.omanet.om/english/culture/images/Fold%20%2015%20%2093.jpg (Sources: www.Omannet.OM) The main daily meal is usually eaten at midday, while the evening meal is lighter. During Ramadan, dinner is served after the Taraweeh prayers, sometimes as late as 11 pm. Maqbous is a rice dish, with yellow rice and saffron served and cooked over spicy red or white meat. Arsia is a festival meal, provide during celebrations, which consists of mashed rice flavored with spices. Another popular festival meal is shuwa, which is meat cooked very slowly (sometimes for up to 2 days) in an underground clay oven. The meat becomes really tender and it is infused with spices and herbs before cooking to give it a very different taste. Fish is often used in main dishes too, and the kingfish is a popular item. Mashuai is a meal consisting of a whole spit-roasted kingfish served with lemon rice. Rukhal bread is a thin, round bread originally baked over a fire made from palm leaves. It is eate n at any meal, normally served with Omani honey for breakfast or crumble over curry for dinner. Chicken, fish and mutton are regularly used in dishes. While spices, herbs, onion, garlic and lime are liberally used in traditional Omani cooking, unlike similar Asian food, it is not hot or spicy. WEARING FOR MEN: [Men Dress] (Sources: www.Omannet.OM) The national dress for Omani men is a simple, ankle-length, collarless gown with long sleeves called the dishdasha. The colour most frequently worn is white, although a variety of other colours such as black, blue, brown and lilac can also be seen. Its main adornment is a tassel (furakha) sewn into the neckline, which can be impregnated with perfume. Underneath the dishdasha, a plain piece of cloth covering the body is worn from the waist down. Omani men may wear a variety of head dresses. The muzzar is a square of finely woven woollen or cotton fabric, wrapped and folded into a turban. Underneath this, the kummar, an intricately embroidered cap, is sometimes worn. The shal, a long strip of cloth acting as a holder for the khanjar (a silver, hand-crafted knife or dagger) may be made from the same material as the muzzar. Alternatively, the holder may be fashioned in the form of a belt made from leather and silver, which is called a sapta. On formal occas ions, the dishdasha may be covered by a black or beige cloak, called a bisht. The embroidery edging the cloak is often in silver or gold thread and it is intricate in detail. Some men carry the assa, a stick, which can have practical uses or is simply used as an accessory during formal events. Omani men, on the whole, wear sandals on their feet. WEARING OF WOMEN:[Women Dress] (Sources: www.Omannet.Om) Omani women have very colourful costumes which vary from region to region. The main components of a womans outfit include of a dress which is worn over trousers (sirwal) and the headdress, called the lihaf. There are numerous traditional styles of Omani costume seen in Muscat. However, there are three main types which show vibrant colours, embroidery and decorations. One style of costume is quite flowing and resembles that worn by the women of the Interior, while another is decorated with distinct silver bands. The embroidery on these dresses can take around two months to comp lete. https://www.savvykenya.com/wp-content/uploads/2011/05/animated_computer_student_3.gif TECHNOLOGICAL ENVIRONMENT INTRODUCTION OF THE SECTOR The level of technological advancement in a country can positively or negatively affect the opportunities available for a business. The rise of mobile technology, wireless internet, access to electricity, internet access and transportation networks all influence the ease of doing business. Technology is very important in todays economy as it play important role in economic development of any country. A region with a strong technological establishment enables companies to influence multiple tools like mobile technology and Enterprise 2.0 methodologies to modernize operations, eliminate bottlenecks and provide their workforce with collaborative knowledge management systems. On the other hand, many countries may not be as technologically advanced from ones country reasons may be such as their citizens demographics falling beyond down the product distribution curve (segmenting technology consumers into innovators, early adopters, early majority, late majority, and laggards), infr astructure challenges hindering electricity or communication lines, or a lack of foreign direct investment from multinational corporations providing capital infusion. In order to learn more about the technological environment of an area and a regions tendency to adopt new technologies, one may look to a circulation model which uses historical consumer purchase data in order to find the rate of product adoption among potential consumers. INFORMATION TECHNOLOGY MARKET OVERVIEW: The total size of the Oman IT market in 2010 is estimated by BMI at around US$327mn, up from US$308mn in 2009. BMI expects a market compound annual growth rate (CAGR) of 5% for 2010-2014.Omans economy is relatively well positioned for the post-credit crisis era, but IT spending is not seen as returning to its previous rate of growth over the forecast period. Omans IT market is only about 10% of the size of the Saudi Arabian market, but the Omani government is investing in IT as part of its Digital Oman scheme and strategy to diversify the economy. In addition to in progress demand from the oil and gas sector, this should generate IT spending in verticals such as telecoms, financial services and aviation. Economic reform and trade liberalisation has increased the spending of both public sector organisations and enterprises. Growth in e-commerce will also make spending by enterprise on e-commerce phase and back-office systems. Oil and gas stay a support to the local economy and wi ll generate spending on customized solutions, hardware and software support. Industry Developments in August 2009, Omans Information Technology Authority (ITA) reveal a new e-Oman brand. The governments e-Oman goals include connection Omans digital divide and making e-government service available to all citizens and residents. In 2009, the ITA was preparing to launch an E-Government Services Portal, a gateway to services offered by government departments via the internet. A key driver of Omani e-services development is expected to be the e-Purse initiative, launched in 2009.The e-Purse, which will be fixed in national ID and residence cards, was being implemented by the ITA in association with the Royal Oman Police and Bank Muscat. TELECOMMUNICATIONS MARKET OVERVIEW Telecommunication facilities are important for doing any business activities. The telecoms sector in Oman is comparatively undeveloped for the region and for the GDP per capita. But now this situation has begun to change, with the introduction of some competition in the market, but many likely remains. Both fixed-line and mobile telecoms access levels are low but since the launch of  second mobile operator Nawras, mobile subscriber growth has increased rapidly. Strong growth charge has also been recorded in the broadband market, from low levels, as present Oman Tel prepares for further competition. This report provides an overview of the telecommunications market in Oman, go with by related statistics. Information technology and communications have now become the main elements that move forward and help Oman in its national development process. Internet access in most developing countries like Oman is still low as resist to mobiles distribution, despite the government pla ns and strategies to enhance internet distribution. Internet subscribers comprised about 2.5% of the general population of Oman. In contrast, the number of mobile holders increased substantially since the launch of these services in 1996. Prepaid mobile services and SMS were introduced in 2001 and both are currently popular with subscribers. Such fine appeal influenced many government organizations to go mobile with their services. PUSH SERVICES Muscat Securities Market has developed a paid service that enables investors to receive regular updates on market and stock alerts via SMS (Oman Mobile, 2007b). This service also enables users to get an SMS every 30 minutes on market movers top winners, losers and most active companies (Oman Mobile, 2007c). The Civil Aviation and Meteorology in cooperation with Oman Mobile had introduced a weather forecast service for most towns in Oman that allows users to receive weather reports in their mobiles (Oman Mobile, 2007d). Other public organizations have also started to send messages to citizens informing them about certain activities and events. For example, the Public Authority for Social Insurance has currently begun a public promotion to advertise its services and their apparent benefits to clients. Another example is in Oman demonstrative Board and Ministry of Manpower where they now send notification messages to clients about their transactions and other different issues such as new tenders and job vacancies etc. PULL SERVICES Muscat Municipality developed an m-parking system which enables motorists to pay parking fees via SMS (Muscat Municipality, 2007). Drivers can now SMS details of their vehicle plate number to a short code number 90091 and get a confirmation message with allocated time. Five minutes before the allocated time terminate, the municipality sends a reminding message to motorists asking them either to move their vehicles or renew their parking. The Royal Oman Police (ROP) begins a mobile service allowing drivers to inquire and receive information about their traffic offences. Motorists are required to send a message of their ID and vehicle details to 3004 and will receive information on the number of traffic offences and amount payable. This helpful the parents of their sons and daughters driving activities and business owners can keep monitoring of their companys drivers violations on time which can help in reducing the traffic offences. The Ministry of Education now se nds the final general certificate results to students via SMS. Alternatively, students can inquire about their results by messaging their seats numbers to 92020 and receive their final marks (Oman Mobile, 2007a). In addition, the Higher Education Admission Center now informs students of their admission status in different institutions via SMS allowing them to accept or reject the offer by messaging back their choice. ENVIORNMENTAL ANALYSIS https://www.7techies.com/finaljpg/Enviornment.jpg INTRODUCTION OF THE SECTOR The Sultanate of Oman resides in the eastern corner of the Arabian Peninsula, enlarge more than 1700 km from the Strait of Hormuz in the north to the frontiers of Yemen in the south. The Musandam peninsula, the most northern point of Oman is separated from the rest of the country by Fujaira, which is one of the United Arab Emirates. Oman lies between latitudes  16 °Ãƒâ€šÃ‚  and  28 ° N, and longitudes  52 °Ãƒâ€šÃ‚  and  60 ° E. It occupy total area of about 309,500 sq. km, of which mountains, deserts and coastal plains represent 16%, 81% and 3%, respectively. A vast stony desert plain covers most of central Oman, with mountain ranges along the north (Al Hajar Mountains) and southeast coast, where the countrys main cities are also located: the capital city  Muscat,  Sohar  and  Sur  in the north, and  Salalah  in the south. Omans climate is hot and dry in the core and humid along the coast. During p ast period Oman was covered by ocean, view by the large numbers of fossilized shells existing in areas of the desert away from the modern coastline. https://upload.wikimedia.org/wikipedia/commons/thumb/f/f7/Oman-Oasis.jpg/220px-Oman-Oasis.jpg (Deserts of Oman, sources: Wikipedia) The peninsula of  Macadam which has a planned location on the  Strait of Hormuz, is separated from the rest of Oman by the  United Arab Emirates.  The series of small towns known collectively as  Dibba  are the gateway to the Macadam peninsula on land and the fishing villages of Macadam by sea, with boats available for hire at Kasha for trips into the Macadam peninsula by sea. Madhas boundary was settled in 1969, with the north-east corner of Madha Within the Madha exclave is a UAE  cooperative  called  Nahwa, belonging to the Emirate of Sharjah, situated about 8  km (5  mi) along a dirt track west of the town of New Ma dha, consisting of about forty houses with a clinic and Following table shows the geography details about the Oman: Geography of Oman Coastline 2,092  km Bordering countries Saudi Arabia, UAE and Yemen CLIMATE Oman has a hot climate and very little rainfall. Annual rainfall in Muscat averages 100  mm (3.9  in), falling mostly in January.  Dhoar  is subject to the southwest  monsoon, and rainfall up to 640  mm (25.2  in) has been recorded in the rainy season from late June to October while the mountain areas receive more plentiful rainfall, some parts of the coast, particularly near the island of  Masirah, sometimes receive no rain at all within the course of a year. The climate generally is very hot, with temperatures reaching around  50  °C  (122.0  Ã‚ °F)  (peak) in the hot season, from May to September. Following are climate record from the month of January to December: month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year average high  °f ( °c) 81 (27) 79 (26) 84 (29) 93 (34) 102 (39) 104 (40) 100 (38) 97 (36) 97 (36) 95 (35) 86 (30) 81 (27) 91.5 (33.1) average low  °f ( °c) 63 (17) 63 (17) 70 (21) 75 (24) 84 (29) 88 (31) 86 (30) 82 (28) 81 (27) 75 (24) 70 (21) 64 (18) 75.1 (23.9) precipitation  inches (mm) 0.5 (12.7) 1 (25.4) 0.598 (15.2) 0.701 (17.8) 0.299 (7.6) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0.299 (7.6) 0.5 (12.7) 3.9 (99) (Sources: Wikipedia) FLORA AND FAUNA https://upload.wikimedia.org/wikipedia/commons/thumb/8/87/Nakhalfarms.jpg/220px-Nakhalfarms.jpg (Sources: Wikipedia. Palm trees sultanate region) Desert plant  and desert grass, common to southern Arabia, are found, but vegetation is sparse in the interior plateau, which is largely  stony  desert. The greater monsoon rainfall in Dhofar and the mountains makes the growth there more lavish during summer;  coconut palms  grow plentifully in the coastal plains of Dhofar  is produced in the hills. AGRICULTURE LAND IN OMAN https://www.omanet.om/arabic/economic/images/ag01.jpg The results of complete soil surveys carried out by the Ministry of Agriculture show the presence of more than 2.3 million hectares of land in the Sultanate. However, the size of the cultivated area is in fact 73,670 hectares (MoA, 2009*). Over half the agricultural area is located in the Batinah Plain in the north, which represents about 3 % of the area of the country. Seasonal fruit crops occupy the first rank of the total cultivated area in Oman with 37,082 hectares of which 31365 hectares are with date palm. The other cropped area under intercropping includes 28,017 hectares of which 10,735 hectares are with field crops under crop rotation and series, which would raise cropping strength to the extent of 120%. It is clear that there is an increase in agricultural production in 2009 as compared to previous years and the date palm occupies first in both area (31,365 ha) and production (255,871 tons). Date palm represents 85% of the total area planted with fruits followed by banana, mango, Omani lime, and Omani coconuts. Al-Batinah region leads first in the cultivation of vegetables that cover highest of 79% of the area as compared to other regions. Besides, there are also other plant genetic resources such as indigenous grasses, medicinal plants, pastures, trees and shrubs, and forest resources. Farming systems include production of crops viz. dates and fruits, vegetables, fodder and field crops, as well as livestock such as cattle, sheep, goats, and poultry. Farm holdings vary from less than 0.4 ha to more than 84 ha. Those less than 1.26 ha are about 11% of total farm holdings; those range between 1.26 to 2.60 ha are 65%, while those greater than 12.6 ha are about 23.8%. IRRIGATION SYSTEM IN OMAN: Water plays a significant role in the development of Agriculture in Oman, which is largely dependent on groundwater. There are numbers of afalaj (falaj-singular), springs (oasis) and wells that provide the source of water for agriculture since ancient times. Recently, treated waste-water was also form non-conventional sources of water. Sultanate of Oman is known for its unique irrigation systems of springs known as aflaj (falajsingular), which are one of the most important and oldest irrigation techniques established by the ancient Omanis thousands of years ago which is a vital part of the tradition of Oman. There are so far 3,017 live aflaj out of total 4,112 which contribute 404 million cubic meters of water to agriculture. Most of the oasis are used for irrigation through aflaj. The aflaj located near to the stream wadis are often affected by water erosion. Wells and springs play an important role in the life of the Omani society and are used to provide water to the populatio n and farms for agriculture. There are 127,000 wells providing 720 million cubic meters of water needs of agriculture in the Sultanate. The government has established mega-projects for the maintenance and renovation and repair of wells and springs to reduce loss of water and increase the efficiency of irrigation for agricultural purposes. There are laws and regulations by the government to prevent indiscriminate drilling of water wells. In the Sultanate of Oman, the Government is doing efforts to provide water to its citizens by desalination of seawater as an additional source of water for drinking and household uses. The government has so far established many desalination plants since first desalination plant that began operating in 1976 with the estimated capacity of about one million cubic meters per year. The total production of all available desalination stations is about 418,000 cubic meters per day, equivalent to 152 million cubic meters per year. The treated wastewa ter (TWW) has an importance in Oman for use to irrigate plants of garden and road side landscapes as an alternative source of water as well as to recharge the aquifers. There are 51 sewage plants established by the Ministry of Regional Municipalities and Water Resources in different regions. It is expected that the total quantity of treated wastewater would reach up to 270,000 cubic meters per day, which is equivalent to 100 million cubic meters per year, by 2012. At present, the production of treated water is nearly 60,000 gallons per day for use to irrigate parks and green landscapes, which is expected to increase sharply in 2010 after the completion of a sanitation project for the city of Muscat. ANIMAL RESOURCES The diversified livestock in Oman that include cows, sheep, goats and camels, is on the rise annually with goats representing the highest (1557148 to 1685420), followed by sheep and cows while camels were least (301558 to 326240) According to Agriculture Census-2004/2005 of the Ministry of Agriculture, there were 24,730,000 poultry birds which included commercial layers and broilers and domestic birds, spread over different regions of the country. In respect of local production of poultry meat, table eggs and fresh milk, it is evident that fresh milk production has rising trend from 2007(47.63 thousand tons) to 2009 (49.57 thousand tons) whereas poultry meat production had decreasing trend (26.5 thousand tons to 21.0 thousand tons), which could be at the expense of table eggs, whose production was found increased (179 million to 187 million) Local production of fresh milk (1000 tons), poultry meat (1000 tons) and table eggs (million) in the Sultanate Product 2007 2008 2009 Fresh milk 47.63 48.60 49.57 Poultry meat 26.50 20.90 21.00 Eggs 179 185 187 (Source: MoA. 2009. Annual Agriculture Statistics. Directorate General of Planning and Investment Promotions. Department of Statistics and Information. Ministry of Agriculture, Oman. 74 p.) FISHERIES: https://www.omanet.om/arabic/economic/images/fi01.jpg With a coastline over 1,700 kilometres long, Oman is one of the main fish-producing countries in the region and the fisheries sector is among its most gifted sectors. Fishing is one of the countrys oldest occupations. Fish farming is now a rising industry and a fish farming centre is currently being set up, while the quality of the catches is being enhanced, following the creation of the Fisheries Quality Control Centre. Marketing process has been modernized across the country and exports are now better regulated, particularly with regard to certain types of rare, high value fish. Fisheries training centres have been established in al Khabourah and Salalah, data and statistics on the fishing industry have been raise and new fishing dock have been built and equipped with modern facilities; today there are fishing port along the Omani coast. The Seventh Five-year Development Plan (2011-2015) is dedicated to developing and maint aining the Sultanates marine resources, ensuring that the fishing grounds and coastal areas are properly managed, regulated and monitored. The Indian Ocean Rim Association for Regional Cooperation (IORARC)s Fisheries Support Unit is based in Oman. The unit promotes cooperation between member states in the management of this essential and renewable resource. LEGAL ENVIRONMENT https://img.ehowcdn.com/article-new/ehow/images/a08/br/sm/write-subsection-legal-symbols-800800.jpg (Sources: www.google.com) INTRODUCTION OF THE SECTOR One should always consult a legal representative when doing business in order to make certain that all laws and regulations are followed. Legal environments change between the district, city, state/province and national levels. complexity within certain industries can have a strong influence on the ease of doing business, complicating administrative, financial, and regulatory processes, among others. Oman basic Law (Royal Decree No. 101 of 1996) states that the Islamic code the Sharia is the basis for Omani legislation. The Sultan issues laws consistent with the Basic Law through Royal Decrees. Judicial power lies with the courts, which are independent of the executive authority. The Commercial Court has jurisdiction over commercial disputes. In enforcing agreements between partners and reaching decisions based on the Sharia, the court applies Omani laws established by Royal Decrees. The Judicial Authority Law organizes the following different courts in Oman: The Supreme Court, The Appellate Courts, the Preliminary courts (Court of First Instance), The Courts of Summary Jurisdiction Other components of the legal system includes the Administrative Judicature Court, the Supreme Judicial Council and the Public Prosecution Authority. THE CONSULTATIVE COUNCIL In November 1991, Sultan Qaboos replaced the 10-year-old State Consultative Council with the  Consultative Assembly  (Majlis al-Shura) to systematize and widen public participation in government. The Assembly has 84 elected members and exercise some legislative powers. Representatives were chosen in the following manner: in local group they in each of the 59 districts sent the names of three nominees, whose recommendation were review by a cabinet committee. These names were then forwarded to the Sultan, who made the final selection. The Consultative Assembly serves as a channel of information between the people and the government ministries. It is authorize to review drafts of economic and social legislation prepared by service ministries, such as communications and housing, and to provide recommendations. Service ministers also may be call before the  Majlis  to take action to the legislative body questions. They had no authority in the areas of foreign affairs, defence, security, and finances. The  Council of State  (Majlis al-Dawla) has 83 appointed members including 14 women. LABOUR  LEGISLATION The inclusive Omani Labour Law issued in 2003 applies to Omani and foreign employers and employees. The law governs work contracts, wages, overtime pay, leave, work hours, industrial safety, labour disputes, vocational training, and the employment of Omani and foreign nationals. LABOR UNIONS Oman Law was amended during February 2010 to allow the formation of labor unions. There are now approximately 70 Labor Unions within the Sultanate. The law allows peaceful protests. Collective bargaining is not permitted, however there exist labor-management committees in firms with more than 50 workers. These committees are not authorized to discuss conditions of employment, including hours and wages. The Labor Welfare Board provides a venue for grievances. INFLATION As oil prices have risen to a record high, so has inflation. The government depends mostly on oil revenue, more than on tax returns from companies and other government-owned companies. The government is also Omans largest employer, so the high interest that government gets increases the prices of food and construction equipment. The government did support the fuel prices so it doesnt increase the inflation and to make the price suitable for people on low wages. The minimum wage has been changed from 120 Rials a month to 140 Rials because of high records of inflation driven by high prices of oil. In February 2011, the minimum wage was increased from 140 Rials per month to 200 Rials per month WORKWEEK The usual working week is 45 hours and generally runs from Saturday through midday on Thursday. WAGES The government lay down a minimum monthly wage of Rs.100 for unskilled Omani employees and a minimum monthly wage of Rs.150 for Secondary school pass outs. In addition, employers must pay their employees a monthly accommodation allowance of Rs.10 and a monthly transportation allowance of Rs.10. PAYROLL TAXES AND EMPLOYEE BENEFITS The Social Security Law (Royal Decree No. 72 of 1991) introduced a system of  social security to insure employees against old age, disability, death, and occupational injuries and diseases. The law currently applies only to Omanis working in the private sector. Under

Jewish Baseball Jews And Baseball - 3213 Words

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High School Vs. College - 902 Words

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Motion and Car Safety - 762 Words

Motion is how everything in the universe moves, movement of the solar system never stops and is constantly moving but at a very slow speed. There are three laws in motion that explain movement, they are the Newton’s three laws of motion named after Isaac Newton. The Newton’s first law states that an object that is a rest will stay at rest unless an outside force is acted upon it and an object that is in motion will stay in motion unless an outside force is acted upon it. This is also called as â€Å"inertia†, which means the property of an object to restrict its motion. Examples of inertia would be when a car is driving at a constant speed and instantly stops the person will fall forward if there is no seat belt. The seat belt is a safety device that is commonly found on car seats and aircraft seats, it is made from strong durable materials such as fabric, nylon or polyester. Cars that are manufactured are required to have seat belts due to road safety laws. 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European Review of Contract Law

Question: Evaluate the means of law enforcement including the role of the Court of Justice? Answer: Introduction Every land has its own law and moreover a body which regulates the laws and rules which are made so that all the citizens may get an equal right and an equal say in the matters which are related to them all. The body which makes certain important rules and regulations and is being considered in the given case is the European Union (EU) which is both a political and economic union and its territorial union exists all over Europe, 28 member states being a part of it. All the member states make necessary decisions, whatever is required in an institutional form which is supranational in nature. The main important institutions of this Union are- European Parliament European Court of Auditors European Central Bank Court of Justice of the European Union European Council Council of the European Union European Commission These are the commissions who put their heads together to make the best kind of rules which will be beneficial to the mass majority of the population, no matter which class they belong. The given case is also of the various decisions that have been taken by EU and the laws that have been made so as to make the continent a better place for all the people to stay in. On the basis of the given case, the given matter has been discussed with a political point of view. The case that has been given is the one in which EU has made laws regarding compensations that the employee should (like Directive 97/9/EC of the European Parliament and of the Council) get and laws at different stances when the employee and the employer relationship is considered. Before the matter can be discussed, one needs to see what the scene is in brief. There has been a directive which has been passed by EU, dated 2013/08, which directed the member states to enact a compensation scheme where in the industrial sector they should pay a compensation to the workers who have been injured, irrespective of the fault of the employer and it was finally implemented on 1st October 2014. This directive by EU law also states that if there has been an injury which they employer has faced, he should get about 6 weeks off and about 250% of the employers salary should be offered during the period of recovery and also as an convalescence. But this is where the UK law thinks differently. It believes that through the Common Law and the statutes that are already being provided by them to their employers and employees via the schemes and for the compensation are more than enough and that they do not need to incorporate such schemes which are being laid down by EU. They feel that the ordinary law of negligence and the compensation provided thereto is some thing which is sufficient, for any kind of workplace injuries. Here the compensation which is provided to the employee who has been injured, by here it is meant UK is based on a lot more things than the only things which EU mentioned. They consider the degree or gravity of loss, damage, and hurt and that how much would be the cost of recovery or how much is the income of the person who is injured. Like it has been mentioned above the people of the land, UK feel that the Common Law as well as the Statutory Laws have shed enough light on this matter and that any new directive will not need to be incorporated. They feel that the laws which are being followed or that which have already been laid down has enough substance for the given matter and thus the Directives laid down by EU is not something that at that point of time needed to be given importance too. Cases The first person that one takes into consideration in the light of EU laws for discussing the above mentioned case is John who has been working for Westminster City Corporation since the year 1982 as a painter and a decorator and off late has suffered injuries where he has broken an arm and a leg, has fractured his ribs and also has a concussion and for the given damage the corporation takes the liability and has decided to pay 100% of his wages, which is not the same which had been mentioned by the EU and also the recovery charges whatever would be required in order for John to get well. He also gets an additional jump-off pay which would have been more if the retirement years left were not small. The employers here follow the Public Liability Act 1980 according to which certain amount of payments would be assigned to John taking into account the kind of injuries he has faced. The next person and the incident to be discussed is Penelope. She has been working in XCBBiological Science s Ltd which happens to be a private firm and at the place because of the poor maintenance she has faced injuries in the form of burns, which has burnt her skin badly. Her recovery would mean two months off from work and the compensation that she is receiving from her employer is a months pay in addition to what she already gets, also the costs of her treatment is included in this. But the case remains that both the people whose cases have been mentioned above are not happy with the compensation that they are receiving and therefore would like to refer to the directives which are laid down by the EU so as to whether their employers can be sued or not. For shedding light on the given matter, further discussion has been provided which sheds light on all the given facts and issues mentioned in the discussion above. Extent of EUs authority and the effects of the principles lay down by it EU like it has been mentioned above is a political and economic Union and not any obligatory body which can enforce its laws and Directives on the member states unless sit has been decided unanimously. It work or its action is presented in three respective forms which are regulatory functions, directives are passed by them and also decisions are taken by them in certain important matters. The regulations or the Directives passed by them becomes the Law automatically and thus when this is something which comes into force after all the member states has agreed upon it, it overrides all the domestic or the territorial provisions which exist related to the same matter. Thus it can be said that the regulations which are laid down by the EU would hold importance in the member states. EU law is something that the state cannot override whether one considers is horizontally or vertically. A domestic law is going to hold importance in the land as long as there is no similar Law made by EU to o verride it. In case that happens the EU Law stands true in all cases. The regulations become laws if passed by the EU Court of Justice and thus the only thing which is left to the state is the method of their implementation when the regulations have already been made into laws. Though the National Courts have the territorial jurisdiction, and they have the authority to pass the required laws and regulations for the country but what needs to be understood is that above the national laws all the states have come together to become the members of the EU which needs to be regarded when they pass any regulations or when decisions have been given by its court. Thus apart from the regulations which has been passed by it, the common law and the statutory law on negligence has also been discussed below so as to shed more light and that a clear connection is established between the national law and the laws which are made by EU for the betterment of the people. Common Law on Negligence The Common Law which is usually followed in the land which also used for reference in many other cases outside the country lays down following essentials which have to be fulfilled when so that the whole injury could be stated to be a result of negligence on the part of one party. The elements are- Duty of care: one party which is being held for negligence should have owed a duty of care towards the injured party. There should have been a breach in the given duty of care. Vaughan v Menlove (1837) 3 Bing. N.C. 467 The cause of the injury of the plaintiff should be the negligence or the breach of duty of the other party and also the remoteness of the injury also depends on the given breach of duty. Barnett v Kensington Chelsea NHS Trust Bolitho v City and Hackney Health Authority Gregg v Scott And in case the damage was something that was foreseeable the following cases have been taken into consideration- Hughes v Lord Advocate [1963] AC 837 Wagon Mound (No.1) [1961] AC 388 Scott v Shepherd (1773) 96 ER 525 There are certain defenses too which are available for the given case which is that in case there was contributory negligence, or that there was an illegality involved in the given case, or maybe that the injury was caused because of the fault of the plaintiff, in these cases the damages would be likely not given or would be very less because the element of negligence are not being fulfilled exactly. Statutory law on negligence There is no specific statutory law which is followed in UK regarding negligence except what has already been discussed above. The Common Law plays the most important role when it comes to the laws on negligence. Donoghue v Stevenson [1932] AC 562 Thus it can be said that the Common Law or the Statutory Law is something that is in collaboration with the Directives which have been laid down by EU. Here the only difference lies is that the Common Law states many more clauses as to how the negligence has to be proved followed by the damages which are to be rewarded based on the given remoteness of the injury. The basics which is followed by EU is the same, and the only like of difference is the way damages are to be awarded to each person who claims to be a victim of negligence and to whom the employer shall be responsible. Limitation of the directive What has already been discussed is that the Directive and the rule which is usually passed by the EU is something that ultimately becomes the rule in all the member states. It is very important to note that the regulations would only be applicable in the states that are member to this union and at the same time will not be available to the countries or the states that are not a part of the same. The limitations of the directive lie in the fact that not all clauses of a certain tort are considered by them when rewarding the injured the compensation or the damages of his injuries. Here the damages which were decided on the part of the employer of John was more or less sufficient for his sustenance keeping in mind the kind of work he had and the years that he had served the company. But at the same time keeping in mind the kind of injuries that he has faced makes us realize that the EU has had thoughts about the past regulations in mind and that is the reason why it has passed the laws and the regulations. But at the same time the implementation of the given directive or the law lies completely in the hands of the states and the EU can do nothing about how a particular directive is adopted and implemented in any given states. Thus it can be said that there are no direct limitations to the directives which are passed by EU and at the same time a line of limitations does intervene. Penelopes case When the second case is considered a landmark case of EU can be referred too which is known as the Van Gend en Loos v Nederlandse Administratie der Belastingen (1963) Case 26/62 where it was observed that if there is a provision which has been established by the EU, or any of its important commission, whether it is Treaty Establishing the European Economic Community or other, had the authority of creating legalprovision in the given member states. This simply means that if a directive has been passed by EU, in one way or the other the member state would be bound by it and thus if certain rules and regulations have been given by the EU regarding the compensation which should be received by a person in case there has been an injury which has been caused to him while working for the given employer, the employer has to provide for the compensation and the cost of recovery whether or not he has been directly at fault. The given case also establishes the criteria of direct effect which can be used in Penelopes case. Interpretation of National Law and Statute Law and other cases The National Law and the Statute Law has least ambiguity like the EU laws have. These national laws can be directly interpreted like they have been written down and therefore can be directly used in the given case as well. The only area of discrepancy lies is where the damage and the remoteness of the injury have to be decided. Since even this remains a very subjective matter, EU therefore had passed directives and regulations which had awarded more or less a fixed amount of compensation that should have been included in some way in the national law as well. When matters like these are concerned there are famous cases which should be referred too and therefore some of them have been mentioned below- Brasserie du pcheur and Factortame, Joined Cases C-46/93 and C-48/93 (5 March 1996) tells more about the breach of the community law and how that has to be taken very seriously because it holds the community at large. Mangold v Helm (2005) C-144/04 was a case that dealt with Employment Equality Framework Directive and said that if a time arises when the national law or conflicts the EU directive, it is the directive passed by EU that has to be given more important and not vice versa. Marleasing SA v La Comercial Internacional de Alimentacion SA [1990] C- 106/89 mentions the indirect law which says that even the national courts of the member states have an obligatory duty to reason and pass orders in the light of the directives passed or unparsed by the EU. Thus it can be said that if the given Directive by EU are not passed, the given member thence commits a breach of rule, and in turn has to follow what has been laid by EU. State liability EU has laid it down very clearly that the breach of rule, or community law or as a matter of fact any rule and the judgment that has to be passed are to be passed by keeping the directives of the EU in mind and not the national law. The principle states that that the Member States are obliged to make good loss and damage caused to individuals by breaches of Community law for which they can be held responsible and hence damage has to be provided. Article 258 EU Law This is an important article, because it serves more like a remedy, and states that in case any of the member states have failed to follow what has been provided by the EU it shall provide sufficient reason for it and also has to give the chance to the State to give in its observation. If both do not comply, the matter would be then taken to Court of Justice of the European Union. Thus it can be said that in both the cases that have been given, both John and Penelope can ask EU for the kind of justice that they deserve. References Afferni G, 'Case: ECJ Manfredi V Lloyd Adriatico' (2007) 3 European Review of Contract Law Allison L, EU (Palgrave Macmillan 2015) Andersen S, The Enforcement Of EU Law (Oxford University Press 2012) Beever A, Rediscovering The Law Of Negligence (Hart 2007) Bovens M, Curtin D and Hart P, The Real World Of EU Accountability (Oxford University Press 2010) Brennan S, Halsbury H and Mackay of Clashfern J, 2008 Consolidated Table Of Cases: M - Z, ECJ Cases (LexisNexis Butterworth 2008) Ceccorulli M, EU (Routledge 2014) Delaney H and Zande R, A Guide To The EU Machinery Directive (US Dept of Commerce, Technology Administration, National Institute of Standards and Technology 2001) Harlow C, State Liability (Oxford University Press 2004) HIGASHINO A, 'The Dynamism Of EU Enlargement' (2004) 2004 EU Studies in Japan Knop K, Diversity And Self-Determination In International Law (Cambridge University Press 2002) Leden L and Himanen V, EU (Technical research centre of Finland 1996) O'Neill A, Decisions Of The ECJ And Their Constitutional Implications (Butterworths 1994) Reich N, Understanding EU Law (Intersentia 2003) Riesenhuber K, 'Case: ECJ Mangold' (2007) 3 European Review of Contract Law Scholten M, The Political Accountability Of EU And US Independent Regulatory Agencies Steiner J and others, EU Law (Oxford University Press 2006) Taschner H, 'Environmental Liability And Product Liability In The EU: A Comparison' (2000) 9 Rev EC Int Env Law Vajda C, Liability For Breach Of Community Law Winiger B and Andersson H, E M. 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Norbert Reich, Understanding EU Law (Intersentia 2003). Karen Knop, Diversity And Self-Determination In International Law (Cambridge University Press 2002). Helen Delaney and Rene van de Zande, A Guide To The EU Machinery Directive (US Dept of Commerce, Technology Administration, National Institute of Standards and Technology 2001). Hans Claudius Taschner, 'Environmental Liability And Product Liability In The EU: A Comparison' (2000) 9 Rev EC Int Env Law. Karl Riesenhuber, 'Case: ECJ Mangold' (2007) 3 European Review of Contract Law. Aidan O'Neill, Decisions Of The ECJ And Their Constitutional Implications (Butterworths 1994). Giorgio Afferni, 'Case: ECJ Manfredi V Lloyd Adriatico' (2007) 3 European Review of Contract Law. Carol Harlow, State Liability (Oxford University Press 2004).