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    (IntroToEconomic) Assignment 1

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    giska grafinsi
    The GCC was established in 1981 and includes Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. It aims to achieve unity among its members based on common political and cultural identities rooted in Arab and Islamic cultures. The GCC facilitates free trade between members and has progressed integration through removing trade restrictions, establishing a customs union, and developing a common market. While the GCC aimed to create a monetary union, disagreements over the central bank's location caused some members to withdraw from the project in 2001. Despite challenges, the GCC remains an important regional alliance for trade, infrastructure development, and private sector cooperation.

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    (IntroToEconomic) Assignment 1

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    giska grafinsi
    19 views3 pages
    The GCC was established in 1981 and includes Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. It aims to achieve unity among its members based on common political and cultural identities rooted in Arab and Islamic cultures. The GCC facilitates free trade between members and has progressed integration through removing trade restrictions, establishing a customs union, and developing a common market. While the GCC aimed to create a monetary union, disagreements over the central bank's location caused some members to withdraw from the project in 2001. Despite challenges, the GCC remains an important regional alliance for trade, infrastructure development, and private sector cooperation.

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    [IntroToEconomic] Assignment 1

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    The GCC was established in 1981 and includes Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. It aims to achieve unity among its members based on common political and cultural identities rooted in Arab and Islamic cultures. The GCC facilitates free trade between members and has progressed integration through removing trade restrictions, establishing a customs union, and developing a common market. While the GCC aimed to create a monetary union, disagreements over the central bank's location caused some members to withdraw from the project in 2001. Despite challenges, the GCC remains an important regional alliance for trade, infrastructure development, and private sector cooperation.

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    © All Rights Reserved
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    19 views3 pages

    (IntroToEconomic) Assignment 1

    Uploaded by

    giska grafinsi
    The GCC was established in 1981 and includes Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. It aims to achieve unity among its members based on common political and cultural identities rooted in Arab and Islamic cultures. The GCC facilitates free trade between members and has progressed integration through removing trade restrictions, establishing a customs union, and developing a common market. While the GCC aimed to create a monetary union, disagreements over the central bank's location caused some members to withdraw from the project in 2001. Despite challenges, the GCC remains an important regional alliance for trade, infrastructure development, and private sector cooperation.

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    Assignment 1 ; Summary of GCC

    Lecture by Prof. Kambiz Zare, PhD

    Giska Aura Grafinsi, 2502003604

    Bina Nusantara University 2021


    In this online seminar which was held on Wednesday, October 20th, 2021, I had the
    opportunity to learn about GCC. with the presenter Professor Kambiz Zare, PhD who explained
    what GCC is, its members, and the importance of this cooperation for the world trade it and
    applies to the GCC countries that have a free trade between each other.

    The Cooperation Council of the Arab State of the Gulf that originally kwon as Gulf
    Cooperation Council (GCC), political and economic alliance of six Middle Eastern countries—
    Saudi Arabia, Kuwait,  United Arab Emirates, Qatar, Bahrain, and Oman. The GCC was
    established in Riyadh, Saudi Arabia, in May 1981. The purpose of the GCC is to achieve unity
    among its members based on their common objectives and their similar political and cultural
    identities, which are rooted in Arab and Islamic cultures. Presidency of the council rotates
    annually.

    As for several theoretical frameworks in this session, among others regional integration,
    theories international trade, economy integration, and monetary union (Mundell’s Criteria and
    Convergence Criteria). Regional international is divided into two, namely: The idea regional
    integration is developed around trade and trade is mutually beneficial. International Trade
    Theories that means theories of the trade offer valuable assessment of trade patterns that can be
    used to make decisions and shape regional policies of nations. Economic Integration Theory
    stages of Bela Balassa is completed by unifying monetary, fiscal, social, countercyclical policies.
    Monetary Union is the idea of having a common currency require giving up on tools that are
    used to manage economic activities. For example are monetary policy. Therefore, long run
    consequences are to be considered. Consequences of fixed and flexible exchange rate on macro
    indices and exogenous shocks.

    The idea of Creation in GCC in the first place is Security related Issues, Monetary Union,
    Arab Union, During 70s : Britain’s final withdraw, Gulf Dinar and Arabs Unity. The evolution of
    the GCC Supra-National Trade and Investment Policies are 1983 GCC is archive goals for Free
    Trade. In 2003 Custom Union that means removal of restriction on internal trade establishing
    common external tariffs. And in 2008 GCC Common Market labour market mobility unrestricted
    rights of ownership and property, capital mobility similar tax treatment.

    GCC was currencies were pegged to USD in 2001 due to The fluctuations of dollar, Not
    Favorable Economic Circumstance, Disagreement about the Central Bank’s location. And Force
    three countries out of six, more precisely, Kuwait, Oman, and UAE to leave the project. In 2010
    was postponed until 2015 but hasn’t launched. GCC have a few importance issues among others
    Financial Markets, transport system/Infrastructure, and The role of private sector.

    The value of trade between the Gulf Cooperation Council and ASEAN is $87 billion
    (excluding oil and gas products). 6% compound annual growth rate between 2000 and 2016 is
    10.5% (excluding oil and gas products). Indonesia is on 3 rd largest trading partner with $8 billion
    in 2016. Other than that GCC also imports some products from ASEAN such as Mobile Phone;
    jewellery; precious metals; cars; trucks and various food items. GCC also exports to ASEAN
    countries such as Crude oil; Plastics and other energy and energy-derived products.
    The reason that allows the GCC to cooperate with Indonesia is because Indonesia is a
    country with a Muslim majority population. Indonesia also ranks 4th in the country with the
    largest Muslim population in the world. Mutually beneficial socio-cultural cooperation can
    encourage better economic and political relations. As Muslim-majority countries, Indonesia and
    the Gulf states share a similar religious background which can help facilitate communication and
    cooperation.

    Reference:

    Britannica, The Editors of Encyclopaedia. “Gulf Cooperation Council”. Encyclopaedia


    Britannica, 13 Jan 2021, https://www.britannica.com/topic/Gulf-Cooperation-Council .

    https://theconversation.com/4-key-areas-of-cooperation-for-growing-indonesia-and-gulf-
    countries-partnership-157236

    Prof. Kambiz Zare, PhD, International Lecture of Gulf Cooperation Council at zoom on Binus
    University.

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