The Silk Road Economic Belt is becoming increasingly accepted in the international business community. For one thing, there are a lot of high-tech industries located along its route. The Belt has a trade-liberalization trend going on. That means that businessmen from various countries in the world will buy products and promote them through the major roads connecting China, India, and Europe. Each country benefits from this.
First of all, there is a big market for the products of these high-tech countries. It is no secret that these countries have a high-tech economy. Their consumers demand the best products available, and so they will gladly spend their cash to get them Silk Road economic belt.
Additionally, the governments of these countries to gain something from the increased sales. The nations that border these countries benefit by receiving remittances, investment income, and access to the market of the main exporters. China is the biggest provider of this type of income. Its goods and services enter the market of every country in the world, giving them more income.
However, this is not the only way that the countries on the Silk Road benefit. The countries in the region to attract investors. The main reason why they do this is because they need high-tech industries. Some of these high-tech industries are: solar energy, wind power, biotechnology, and IT. With such businesses in place, foreign direct investment (FDI) comes pouring in. This is what is referred to as “vibrant finance.”
The countries on the Silk Road benefit from this. Naturally, the high-tech industries attract workers from other countries to those countries as well. Since workers and technology combine, the companies of the main exporters receive more productivity than before, and they are able to sell their goods and services worldwide.
The Belt and Road Market have created a new market for countries in the Middle East. They no longer have to depend on countries like Venezuela and Iraq for their oil needs. The Middle-Eastern countries can now get oil from United States, Japan, and Russia. Furthermore, due to the political stability created by the United Nations and the West, the money and goods that come into the region will strengthen nations in the region.
One of the biggest reasons why countries on the Middle-Eastern oil export market benefit is because they have better access to Western technology. Without it, they would not be able to compete. Additionally, due to political stability in those areas, the currencies of the major exporting country rise. As a result, the currency of the country’s main buyer increases. The buyers of Middle-Eastern oil, therefore, benefit greatly from the political stability in the countries along the line.
This process is repeated all over the world. Each country benefits from the increased buying power of the major buyer, as well as the rising strength of the major seller. As globalization continues to increase in popularity, this process will only become more prevalent. Countries on the Middle-Eastern oil export line will continue to receive billions of dollars in exports, as long as the political stability in those areas is maintained. Therefore, countries along the economic belt will continue to benefit economically and politically, while benefiting from the globalization process at the same time.
In addition to this, countries along the belt can also benefit through the protection they get from the United Nations Security Council. Because the oil comes from nations that do not necessarily have good relations with the United States or other leading countries, this fact becomes an even greater benefit to them. Especially, during times where there is unrest in other regions of the world, having an organization in place that can mediate between countries helps to keep everyone on the same page. For instance, during the Gulf War, the oil-producing countries did not hesitate to join with the United States in an effort to prevent the political chaos in Iraq. By doing so, they were able to gain the respect of their fellow nations, something that all of their neighbors want as well.
Beyond the political and financial benefits, the Middle-Eastern oil market is a huge trading center. Millions of dollars are traded on a daily basis, making it one of the most important centers of global trade, in the world. Not only is the region home to many of the world’s most technologically advanced economies, it is also home to countries with some of the best educational systems, as well as a vast variety of goods and services.
Although the Middle-Eastern oil-producing countries may feel somewhat intimidated by the increased regional power that the Asian tigers offer, the benefits they receive in terms of trade outweigh the concerns they might have. There are over three trillion dollars worth of trade currently going on between the countries in the Middle-Eastern economic belt. Many nations, in fact, rely on exporting their products to the Asian countries in order to get what they need. This practice allows everyone in the region to reap the benefits of increased international commerce.