1. Several elements have contributed to the growth of transportation and logistics industry.

These
elements include advance technology, separation of raw materials, labor and production,
decline in tariffs, import restrictions, and exchange rate controls. These factors boosted the
demand for global transportation and logistics industry.

Advance technology serves as a tool for a more systematic and accelerated workflow in
the industry. By computers and database system, it would be easier to store data. Dubai Ports
World gives the utilization of advance technologies of great importance. They use mobile
technology for customers, employees, and any other operations in the business. No wonder why
it is among the top three global terminal operators. Through innovation, it has able to provide
the best service to people and experience continuous growth of the business.
Separation of raw materials aides in a more systematic and controlled flow in
transportation and logistics industry. Countries with abundant resources transport materials to
another country where it is needed hence, port sites. Most commonly, the developing countries
export raw materials to the developed countries which they will manufacture into a new
product.
Tariff, import restrictions, and exchange rate controls are barriers to the growth of
transportation and logistics industry of a country. Tariffs are taxes levied on imported and
exported goods while Import restrictions refer to various tariff and non-tariff barriers to control
the volume of goods being imported into the country. Import restrictions are adopted to
maintain the exchange rate of the country's currency. Through decreasing the barriers, global
integration specifically in trade is improved. Supply of imported and exported good are increase
thus, beneficial to the growth of transportation and logistics industry.

2. Dubai Ports World has able to cope up to global economic changes and even managed to gain
benefit from it. First, it heavily invested in its people and innovation of technology. This resulted
to a strong relationship built with its customers because of their intensive customer service
worldwide. Also, it is known for its friendly and efficient facility that made the Dubai Ports World
Jebel Ali facility the “Best Seaport in the Middle East” for 19 consecutive years.
Second, Dubai Ports World go global through business expansion. It operates in various
countries for better market opportunities: access to wider market, natural resources, and
innovative technologies. Third, since transportation and logistics business wouldn’t be possible
without people, Dubai Ports World assured that it employs qualified and skilled laborers. It
made sure that their workers and well-trained and motivated before facing their work.
Fourth, Dubai Ports World managed to address risks issues with utmost care. Through
continuous researches and analysis, it has able to cope up with environmental, economical, and
technological risks. Lastly, Dubai Ports World show concern and consideration to the
environment. It has “green innovation” to help reduce its carbon footprints.
3. What economic factors influence the success of the international transportation and logistics
industry?
Economic factors that contribute to continuous success of transportations and logistics
industry are the countries intention to increase employment rates and facilitate economic
growth. Governments always seek greater opportunities by opening their ports to logistic
companies because they offer blue-collar, white-collar, and no-collar jobs. Along with this, new
businesses emerge such as manufacturing companies that facilitate the conversion of imported
raw material into a new one. If there is an increase in employment and new businesses, increase
in overall economic growth would follow. These scenarios are favorable to every government
hence, transportation and logistics industry is supported.
Another economic factor that aides in the growth of transportation and logistics
industry is the economy of a country itself. By looking at the economic trend information of a
country, its increase and decrease influence the number of products being exported or
imported. This information plays a significant role in the success of logistics companies. The
current economic outlook of a country would help logistics industry to determine the best
logistics solution with much certainty. This leads to a strengthened relationship with the
customers.

4. How can logistics companies increase business with countries in Europe, Asia, and Africa?
Doing businesses with other countries entail complex challenges and responsibilities.
Logistics companies would survive doing businesses with other countries by, most importantly,
studying their domestic policies. These policies may raise costs, reduce efficiency, varying
treatment of local corporation from foreign-owned, and strict investment accommodation in
certain activities. These will crucially affect the supply chain which may compromise the success
of the business if not properly studied.
Another barrier that a logistics company may encounter is high transportation costs,
expensive supply chain, and time-consuming activities. Countries in Europe, Asia, and Africa
suffer in those aspects. These needed to be solved without compromising the value of the
service offered to the people. Continuous automation, outsourcing, monitoring customer
demand, improving the requisition and approval process, and limiting constraints in the
production are some of the best ways to reduce the cost of supply chain and time constraints.
Countries in Europe, Asia, and Africa are resistant to change. They are very particular to
foreign businesses stepping into their premises because of security and dominance issues.
Logistics company must negotiate with these countries the terms and stipulations of the
contract that would induce them. There must be an assurance that welcoming their business
will be advantageous and would not put the country’s safety or economy at risks.

5. What threats exist for Dubai Ports World? How would you overcome these threats?
According to the SWOT analysis that was conducted by researchers in Transport and
Logistics, Dubai Ports World business operation is threatened by mainly the following: (1) legal,
regulatory, and contractual obligations, (2) Foreign exchange exposure, and (3) Uncertain
trading environment.
 Since DP World does business globally, obeying every regulations of each country is a
delicate thing to do. It is important to completely understand and comply with the mandatory
requirements to avoid conflicts. Hiring an expert or having a well-practiced legal management
team would be a best move to cope up with complex and ever-changing laws and regulations.
Foreign exchange exposures refer to the associated risk when making financial
transaction with foreign countries. All currency rates experience volatility which may affect the
profitability of a business if cash flows are not protected from sudden fluctuations. It is
important for a DP World to study risk management to reduce the possible Foreign exchange
exposures. Also, it can adapt a strategy, most commonly involving contracts, that allows it to
lock in exchange rate for an extended period of time. Spot transfer, forward exchange contract,
and limit orders are some of the effective way to handle the effect of volatile currencies.
Uncertainty in trading environment could incur opportunity loss and waste of time. This
happened because of the continuous changes in the trade market, customer preferences,
political influences, emerging competitors and other factors that are happening in one country.
DP World must give a 101% focus to their Research and Development sector to come up with
much accurate strategies. Consistent SWOT analysis, feasibility studies, comparative analysis,
benchmarking, and other analysis reports to guide the business in better decision making
policies.

6. Discuss some of the legal issues that Dubai Ports World have faced? How has this affected their
operations in the US and other places?

In the year 2006, DP World bought Peninsular and Oriental Steam Navigation Company.
Because of this, they have gained control in six of the major US Ports. This became an issue to
the politicians in the six cities because their vital infrastructures are owned by Arabs. Why? Two
of the 9/11 hijackers were from UAE. They were alarmed and afraid that UAE would use the US
Port to link terrorists to transport weapons and operatives and initiate terrorism. Another issue
of US is that millions of containers will enter its premises over a year, and it would be difficult to
search each container thoroughly. This might be a way for them to fill the containers with
people and weapons that will threaten the security of the people. Due to pressure, DP World
dropped the Port deal. The major impact of this legal issue to the operation of DP World is the
imminent loss of big opportunities. This deal was expected to generate more profits to DP World
but it was withdrawn due to issues. Many critics were against the deal and DP World’s operation
that foreign countries were prohibited to own facilities inside US. These controversies have
affected the relationship of DP World among its foreign customers because their reputation and
integrity were questioned. Other countries would start to doubt or, worse, reject to enter a
contract with DP World. The reputation and name that they built for a long time was at risk.