OVERVIEW OF JORDAN
This chapter gives an overview of Jordan. The chapter begins with brief information on the geographic country of research, followed by the demographic features of Jordan and eventually an appraisal of the state of affairs in the economic and industrial sectors in Jordan.
2.2 GEOGRAPHIC AREA OF RESEARCH
The focal point of this survey is on the existent purchases made by Jordanian consumers in Jordan. Specifically, this survey focuses on the respondents who are populating in Amman. The grounds for taking this country are as follows: ( 1 ) Amman is the biggest metropolis in Jordan. It is home to 58 per cent of the population ( Government of Jordan on-line information, 2008 ) . Therefore the study can give an accurate research respond rate. ( 2 ) Due to its position as the capital metropolis, many foreign and local goods and merchandises can easy be found in Amman than in other metropoliss. ( 3 ) . Amman has the biggest supermarkets and promenades in Jordan. ( 4 ) The population of the metropolis comprises people from different civilizations who have come from countries in the North and West. This makes Jordan Amman rich in varied civilizations and beliefs. ( 5 ) Amman is located in the Centre of the state ; therefore it is non far from other metropoliss in Jordan ( Government of Jordan on-line information, 2008 ) .
2.3 DEMOGRAPHIC CHARACTERISTICS
Jordan has a population of 5.9 million. Ninety-five per centum of the state ‘s population is Arab. Jordanian Arabs make up 55 % of the population ; around 40 % are Palestinians who came from Palestine to Transjordan, and gained Jordanian citizenship after the Arab-Israeli struggle in 1948 and 1967 ( Jordan state profile, 2006 ) . The staying non-Arab population consists of Circassians, Chechens, Armenians and Kurds who have merged into the Jordanian civilizations in the state.
Harmonizing to Jordan Library of Congress ( JLOC ) , September 2006, in Jordan different guest workers around 300,000, from different states such as Egyptian, Bangladesh, Sri Lanka, China, India, and at minute a batch of Iraqi arrived because the Iraq War irrespective for good or temporarily.
The official linguistic communication in Jordan is Arabic, but English is besides widely employed and used in Jordan among broad scope of people. Arabic and English are mandatory taught in school both private and public ; other linguistic communication such as Gallic is taught besides but is non mandatory ( Jordan state profile, 2006 ) .
As a Muslim state, Jordanian civilization is strongly influenced by Islamic instruction and patterns which cover all aspects of human activities including business-buying and merchandising minutess, all of which must follow the instructions of the Quran.
In many respects, western values and instructions may differ from Islamic instructions, and rather frequently such differences discourage and forbid the pattern of ethnocentrism. This does non intend that consumer ethnocentrism does non be or that it is non a phenomenon in Jordan. However, there is no empirical grounds about this phenomenon ( Hussein, 1997 ) .
2.4 THE ECONOMY OF JORDAN
In January 1994, Jordan applied to fall in the General Agreement on Tariffs and Trade in 1947, which is besides an application for rank into the World Trade Organization.
Globalization is inextricably attached to Jordan ‘s approaching clip. To be a competitory participant in the planetary market place is cardinal to the state ‘s economic growing. First, it ‘s engagement in the universe trade will back up trade and investing chances for in Jordan. This support will include the development of regional and other international trade markets.
Incoming investings in Jordan are two types: Beneficial 1s that enlarge the productiveness capacity create new employment chances and produce national exports alternatively of imports. This type of investing is favourable and deserves encouragement.
While the other type is a heavy load of investing on the national economic system and the balance of payment, this sort of investings average buying of undertakings and in return does non make anything to the national investing, replace proprietors and send to their central offices abroad their net income, in add-on, this type of investors are capable to Torahs, determinations and precedences non a Jordanian on foreign investing can be good of investors who have adequate expertness to transform the undertaking to an international 1. By making so investor becomes a strategic spouse and non a competitory 1
Foreign investing can be unsafe if they become capable to rapid Liquidation investors can retreat easy, larning behind calamity consequences as it happened to ” Asiatic Tigers ” during last decennary. Therefore host states must maintain in manus immense sums of difficult currency to face exigencies.
The Government of Jordan is really concern to back up Jordan ‘s public and private sectors. In term of that, the authorities offered a batch of attempts back uping the investing such countries as efficient fiscal sector, legal and regulative reforms. Many installations the authorities tries to supply in consider promoting the investing.
In fact, Jordan is a little land has many challenged such as deficiency of H2O, and the limited of the local energy resources. Over the past decennary, nevertheless, the authorities tries to offer the best to demo the positive property of Jordan economic system, such as her comparatively knowing and skilled labors force and the state ‘s stableness as compared with many of states “ neighbours ” ( Government of Jordan on-line information, 2008 ) .
Based on Jordan state profile ( 2008 ) , entire of Jordan GDP is 12.9 billion USD for 2007 ; 11.5 billion USD was in 2006, as per capita 4.800 USD.
A foreign grant is in the addition, the Numberss talk for them. It is known the foreign grants to Jordan has political features and annual sums are non capable to future anticipation ‘s because it depend on political military and surety issues in the Middle East part and the function of Jordan in so.
It is non wise to anticipate immense sums of dollars in the signifier of foreign assistance, and when this does non come true, the budget will be embarrassed. Therefore to anticipate less is better and does non do instability to the budget.
Based on Jordan state profile ( 2007 ) Jordan will stay in demand for foreign grant to fund its development undertakings and non widen its outgos. Jordan found the best type of foreign assistance is that the conditional 1s which come to implement a certain undertaking. By making so, they cause the economic system and national industry to turn which reduces our imports that are traveling on now.
Jordanian Ministry of Industry and Trade debated that Europe and America compensate us partly through grants. Therefore, does that intend for us to remain dependants on grants? Al Faniq ( 2009 ) asked.
2.4.1 Exports & A ; Imports
As Table 1-1 shows the entire imports and exports, trade shortage still remain and expect to be worsen in 2009. The chief exports for Jordan are manufactured merchandises, fertilisers, phosphates, agricultural merchandises, potassium hydroxide, and vesture. As the chief states for the export markets, are Iraq, the Saudi Arabia, India, Iraq and United States ( Jordan state profile, 2006 ) .
As for Imports, in 2006, Jordan state profile study shows the chief topographic points of imports to Jordan are India and Saudi, and Iraq coming in first precedence followed EU and the US, showed finish for Jordan.
The chief exports for Jordan are chemicals ( 27 % ) , Machinery and electrical equipment ( 34 % ) , transport equipment ( 20 % ) , minerals ( 8 % ) , machinery ( 10 % ) ( Jordan state profile, 2006 ) .
2.4.2 Trade Balance
Since independent, the trade balance of Jordan had a negative way, as can seen each twelvemonth as we mentioned in first chapter Table ( 1-1 ) , this due mostly to the crisp addition in oil monetary value. The shortage was expected to decline in 2009, and later to better ( Jordan state profile, 2008 ) .
2.4.3 Industrial Sector in Jordan
As a consequence of economic openness, and liberalisation of exchanges the industrial environment is witnessing development and continues alteration. Where as it have several features such as: supply addition and technological promotion, therefore, manufacturers and distributers have begun their activities in a competitory environment ; whereas market is witnessing a assorted sets of air conditioners foe illustration which are produced or assembled locally under a national or foreign trade grade and are imported straight.
In the other manus, private sector should bear duty through the investing in research and development procedures, create occupations, put in new engineering in order to maintain gait with alterations and uninterrupted development which industrial environment is witnessing on the planetary degree ; this is characterized by addition in invention rate technological alterations, production and export operation and national investing private or public, must be protected because it creates wealth and the certain added value it carries.
Jordan is a Middle East state, located between “ north ” Syria and Iraq, “ South ” Saudi Arabia, “ west ” Israel and the West Bank. Unlike many of her neighbours, Jordan lacks oil and gas militias, and is to a great extent dependent on imported energy beginnings. Jordan is a little Arab state with unequal supplies of H2O, oil, and other natural resources. Inflation, poorness and unemployment is a major job Jordan challenged.