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
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.
Since the country has had massive oil reserves and a low production cost, it is likely that this sector will remain a major source of government revenue for years to come. However, due to the increasing number of alternative energy sources, Saudi Arabia started losing pricing power. The price-and-revenue balance became instable, resulting in a shortfall in the usual spending habits. After the collapse in the global prices of oil in the second half of 2014, Saudi Arabia started analyzing long term fiscal plans. Enough funds existed to sustain the country on the short term; however on the long run, Saudi Arabia faced a number of policy choices.
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
The Saudi’s want to be the next big expansion in the Middle East. When Alan reaches the “KING ABDULLAH ECONOMIC CITY: ONE MAN’S VISION, ONE NATION’S HOPE” he is shocked to see nothing but two buildings (pg. 40). The King in this case saw the impact Dubia had on the world and wants to bring that same paradise to his land. If he succeeds he can ensure a positive future for himself and would begin the global capitalism for the rest of Saudi Arabia.
Also, the women of Saudi Arabia have literally been fighting for these rights since the 90’s. And me personally I believe that all humans are equal. Lastly, letting women drive will increase the economy in Saudi Arabia because now women do not have keep spending their money on private drivers or paying a relative to take them work. Now they can invest that money back into their families or anything else that is essential to them. Many of the kingdoms professional and young people will welcome the change, looking at it as a step to making life in Saudi Arabia like everywhere else in the
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
The main aim of adverts is to change customer perception making the demand curve more inelastic. For example, Hongkong’s textile and clothing industry have been on a spirited campaign to popularize their brands inhibit entry of other business from other nations. They further deliver high-quality products to tighten the supply chain barring any new entry into the market. Q3. How Might advertising make Markets less competitive-Hong Kong Advertisement further has the potential to increase the competitive edge of the market by reliably informing the customers and giving them an opportunity to make an informed decision.
Since Saudi Arabia has a huge area and the distance between main cities are long, hybrid cars can reduce the number of refueling and consequently time. The rate of the depletion of the reserved oil will be less, and that means more lifetime for the reserves. The more usage of hybrid cars will mean that more research and development (R&D) in this sector, which will result in the cost reduction of manufacturing hybrid cars. The goal of this research is to study the consumers’ attitudes in Saudi Arabia towards considering buying Hybrids. The importance of this research is to fill the gap about consumers’ opinion considering buying Hybrids, since Saudi Arabia is one of the largest markets in the Middle
According to Mark Gottfredson (2005) in Strategic Sourcing: From Periphery to the Core, there are many companies have transformed its businesses through means of globalization and technologies, which eventually increase their competitiveness level in the industry. Saudi Aramco shall focus on its core strategic capabilities, which differentiate its uniqueness and empower it to stand out from the crowd. Through the transformation, Saudi Aramco is in need to elevate its sourcing strategy that will support its ability to control and make the most of its critical