In July, noticing that a gas pipeline from Iran is likely to become operational in November, Iraq and Iran signed a four-year agreement for the supply of gas to three Iraqi power plants. Currently, Iraq cannot meet the energy demand for economic development even though it has a large amount of gas. So it is very important and necessary to import gas. At this moment, Iran is here to help. But the truth is more than that, they co-operate. For example, Two drilling company from Iraq and Iran also have an agreement of training and other technical assistance in drilling operations.
Recall Dell’s case, “virtual integration means you basically stitch together a business with partners that are treated as if they are inside the company”. The two countries is a real life case. They are just like two big companies who work together but now it is to boost the national economy for both of them. If there is a problem, they can fix it in real time. The corporation also demonstrates their close relationship so that the process will move more efficiently. The import is a solution for Iraq’s power generation shortfall. Moreover, they said they have incorporated Iraqi demand for quick growth in natural gas supply into their economic forecasts and will leave them unchanged.
Work cited:
The economist. Intelligent unit. Web. 21 Oct. 2013