Beruflich Dokumente
Kultur Dokumente
INETRNATIONAL BUSINESS
TOPIC REVIEW
What are the international Business
Implications of the Rise of ISIL?
Answer
1
Religious fundamentalism?
Radicalization?
Neighbouring countries are serving as refuges for
people fleeing the conflict
Some neighbouring countries have joined the West in
airstrikes to prevent the ISIL from overflowing into
their countries
Answer
(1) IS actors:
(a) Conduct and coordinate military campaign
(commanding 15,000 fighters from across the
globe) against Iraqi/Kurdish & Syrian military
forces and now against the US and its allies
(b) recruit fighters from around the world
(c) raise funds from supporters abroad (individuals
& groups)
(d) manage millions of dollars of revenue daily
amassed through drug trafficking, illegal sale of
antiquities and proceeds from the black market
sale of oil products obtained from the
sites/oilfields it has seized
(e) finance arms purchases
(f) operate protection rackets that exploit local
economies in areas they control
(g) raise ransom money in exchange for captured
foreigners
(h) establish and administer a tax collection system
(i) law enforcement in captured areas
(j) manage municipal services in several cities
(k) kill captive hostages
(l) persecute religious minorities
(2) US & Allies:
(a) Air strikes against IS/ISIS/ISIL in both Iraq & Syria
Early in September, US President Barack Obama
unveiled a strategy to defeat the IS insurgency
by creating an international anti-IS coalition and
conducting airstrikes against IS targets in Iraq
and Syria.
(b) Humanitarian support for minorities targeted or
besieged by ISIS/ISIL
(c) Choking of financial support to IS.
4
Answer
Social Impacts:
Deaths and human suffering
A rising tide of refugees and internally displaced
people
Destruction of property
Cultural Impacts
Destruction of Sufi sites and architecture
Assault on cultural diversity
Political Impacts:
The rise of ISIS is a development that is contrary
to what the youth of the MENA region had
agitated for (i.e., political reform). It is thus a
serious setback for democratic reform in a
region that is crying out for it.
The cry for freedom by the Syrian people has
been muffled by the rise of ISIS because its
surge has bolstered the Syrian regimes claim
that it has been fighting foreign Islamists
extremists all along.
Common cause against ISIS is bring some
geopolitical shifts that might reshape
international cooperation and could influence
Iran nuclear talks as US and Iran tone down
their rhetoric against each other
Iraq may not survive as a single country/state
Economic Impacts:
Decline in aggregate economic performance
Disruption in Oil & gas production (& exports)
Disruption in other industries
Destruction of infrastructure
Political
Economic
Legal
Social
Cultural
Technological
Ecological
Implication
s for the
Industry
environme
nt(s)
Answer
Buyers
bargaining
power
Suppliers
bargaining
Power
Threat of
Substitutes
Implication
s for the
organizatio
nal
environme
nt(s)
Potential
Entrants
Industry
Competitors
Organizational
Structure
Organization
Strategy
Organizational
Practices
Organizational
Reputation
Organizational
Performance
10
Answer
The IS/ISIS/ISIL has been doubly disruptive:
(a) It has disrupted a century-old Middle Eastern order
that was already under historic strain (i.e., it
threatens to take over not only Iraq & Syria but also
other states/countries in the region).
(b) It has challenged our basic assumptions about the
nature of threats and our ability to contain them
(states are now confronted not only by other hostile
states (e.g., US vs Iraq) or terrorist groups (e.g., alQaeda) but also by state-like terrorists (e.g., the IS)
Unlike the hitherto experience of the traditional terrorist
groups, the very factors that have given IS its power and
credence are also its vulnerable areas:
(a) The IS owns tanks (captured from its enemies) but
these can also be easy targets for destruction e.g.,
by coalition air strikes
(b) It has captured oilfields that are helping it raise
revenues from sale of oil, but these can be bombed
or recaptured
(c) Is command posts can be destroyed/dismantled by
its enemies
(d) IS conventional military forces that are fighting and
overpowering many Iraqi & Syrian forces in the
battlefield are prone to be attacked and defeated by
the coalition forces and its allies.
There is a risk that ISIS might get hold of weapons of mass
destruction (e.g., active materials used for medical
purposes or chemical weapons) that could pose serious
risks for people in the region and beyond
Rising anti-immigrant, anti-muslim sentiments in western
countries
Societys values are under scrutiny as ruthless dictators are
brought down or cut to size.
What
recommendat
ions can be
made for:
Civilians in
affected
countries
Home
country
public
authorities
Civil
Society
Organizatio
ns/NGOs
11
Foreign
Governmen
ts
Business
Organizatio
ns
12