Abstract

This article examines the impact of the Iran-Iraq War on the neighboring countries and MNCs that conduct business in the region. It identifies the political pressures exerted on the Gulf Cooperation Council (Saudi Arabia, Kuwait, Quitter, Bahrain, Oman, and the United Arab Emirates) and discusses the changes that these countries undertook to guard against the possible spillover of military and revolutionary operations. Sales, investments, and contracts in these countries were statistically tested for significant effects on MNCs. This article also explains the historical roots of the Iran-lraq War and the underlying political risks faced by governments in the region.