BUSINESS INTERNATIONAL

CASE # 2
1-3. What global factors have contributed to the growth of the
transportation and logistics industry? How have they contributed to
this growth?
Several factors have led to the growth in the transportation and logistics
industry:

the separation of raw materials,

labor and production,
decline in tariffs,
import restrictions, and
exchange rate controls

This are some of the main factors that led to this growth. These factors have
resulted in an increased demand for transporting raw materials, unfinished
goods, and finished goods in the global economy.
1-4. What steps has Dubai Ports World taken to benefit from global
economic changes?
Among the steps it has taken Dubai Ports World is the developing
Logistics Clusters,
are known to have high transportation services, low transportation
costs, and an efficient flow of goods. The advantages of such
clusters are economies of scope, economies of scale, economies of
density, better service, and price stability. They also bring value by
generating other business activities and bring in new jobs. These
benefits create a positive feedback
loop attracting more
companies to them, resulting in further cost reduction and better
efficiency.
Also, Dubai Ports World It heavily invests in its people and
technology to provide better customer service worldwide. This
customer-oriented approach has resulted in strong relationships
with customers and superior customer service levels.
1-5. What economic factors influence the success
international transportation and logistics industry?

of

the