2.3.1 Global brand situation in Saudi Arabia The issue of global brand presence in Saudi Arabia was reviewed by Assad (2007). The research established that both local and global factors had a crucial role to play in consumerism in Saudi Arabia. Some of the issues that have promoted the growth of the lifestyle of Western consumerism in the country include proliferation of the shopping centre, urbanization, and manipulative advertising. This is an indicator of the existence of a strong relationship between the market in Saudi Arabia and global presence in the state. It was also established that these issues have a bigger impact on the younger than the older generation.
Not to mention the economy has already fallen into recession due to low oil prices. Although hope seems grim, there is a new breed of state backed companies rising to compete with the old guard. These new enterprises are also linked to the PIF, the top diverging wealth fund in Saudi Arabia. However, it is unclear how smoothly and efficiently this transition will be made and if Saudi Arabia’s economic stability will be
Additionally, the reason why Japan scores higher is that Japan has several advantages while Saudi Arabia has not, such as a larger population, an easier transportation, a greater GDP, a free market economy, a more stable society, a larger share of imports for honey products, and a lower trade barrier. Table 3: the weighted index of market potential for Japan and Saudi Arabia Variable Weighting Japan Saudi Arabia Score Adjusted Score Score Adjusted Score Economic endowment 15% 9 1.35 5 0.75 Economic stability 20% 6 1.20 8 1.60 Democratic level (economic freedom) 10% 9 0.90 4 0.40 Political stability 20% 6 1.20 5 1.00 Potential market 25% 8 2.00 6 1.50 Trade barriers (taxation & tariffs) 10% 8 0.80 5 0.50 Total 100% 46 7.45 33 5.75 6.0 Conclusion This report has outlined the economic, political and business environments in Japan and Saudi Arabia and evaluated their market potential for exporting Australian Manuka honey products. Based on this analysis and the weighted indexes, I recommend Japan as a more potential foreign market because Japan has a larger size and better features of the economy and a sounder and more stable social system for
These online sites are providing best deals to the consumer with a vast number of variety options from global market .Globalization has intensified the competition in the market with the fact that there are many new competitors across the world in addition to domestic competitors. Nowadays business is more challenging than ever before due to efficient distribution and transportation system. The making and receiving of payments are faster and more secure with the help of internet or mobile banking. Finances for the consumers and traders are readily available due to globalization of financial institutions. Financial institutions are willingly spreading their capital in the international market to reduce their overall level of risk.
Saudi Arabia's government for opening foreign investment and softening the conditioning also affected the monetary funding for the country in addition to attract the latest technology and products. Foreign investment is a positive effect of globalization for Saudi Arabia. With the government increasing the public spending and funding new fundamental projects, trade for Saudi Arabia is not limited only for products but the attract of external labor. Every year Saudi Arabia attracts about one million expatriates to work for the projects, which will help in accelerating the development wheels, regardless the side effect of Saudi employment still there are some types of jobs which are not attracted for Saudis due to its low wages. Being open to globalization allowed many of the Saudi citizens to go abroad to pursue their studies that leads to different degrees including Bachelor, Masters, Doctorates and medical fellowship with the support of the government by launching the King Abdullah Scholarship
Enough funds existed to sustain the country on the short term; however on the long run, Saudi Arabia faced a number of policy choices. The first, as a result of insufficiently perusing reforms, is the reduction per capita of spending on healthcare, education, social welfare and public investment. The second is increasing non-oil tax revenues, through income, corporate or consumption taxes. And the last is adopting a plan where a greater portion of future oil revenues are saved, generating a sustainable investment income to meet future spending needs. The last is the most urgent and least economically and socially costly; embracing a fiscal framework would ensure medium and long term fiscal
The author also mentions that the modern globalization of culture can be taken place in a foreign culture as a result of Americanization. Additionally, the author explains the effects which can change foreign cultures by spreading of American companies like restaurants and how these restaurants and companies affect many foreign cultures and habits of people. Therefore, these restaurants influence the habits of people like coffee drinking and eating and how the American styles can change cultures just like Starbucks and McDonalds. Furthermore, globalization can lead to changes like films and entertainment industries. One of the examples the Levin institute (date unknown) mentions is the Globalization makes
Globalization has positive and negative impacts on any culture, especially in developing countries like Egypt. This shows that we cannot really identify that globalization is good or bad for a specific country; we can only point out how globalization affects the specific
This meant that H&M were forced to feature online shopping too in a bid to not completely fall behind and lose a hefty amount of business to their competitors due to the globalisation of online shopping. Throughout this report an analysis of the impact of Globalisation on the retail industry. This will be developed by forming a comparison between a traditional “bricks and mortar” retail business and an international “online only” retail business. Furthermore, research between an online only retail business being ASOS and a traditional ‘brick and mortar’ retail store being Jay Jays will be conducted to gain information on the environmental consequences, economic consequences and/ or costs, and the changes to our society of shifting to an online shopping retail environment. These categories are chosen as they are pillars of sustainability.