When determining whether a country could be a suitable partner to establish business relations with, many factors must be taken into consideration before making a decision. Some of these factors include the characteristics of the country, the demographics of the market place and supply base, and the country’s infrastructure. These traits directly affect how a company will adapt to a local environment and how a supply chain manager will make their decision on whether to establish relations with the country. The country that will be analyzed in this paper with all these characteristics taken into consideration will be Saudi Arabia. Through the information provided, we will determine whether Saudi Arabia can fit into the future global supply …show more content…
Saudi Arabia is very well known for its reserves of oil and gas, holding the second largest oil reserves and the sixth largest natural gas reserves in the world.
The political situation of Saudi Arabia resembles that of an absolute monarchy, in which the King of Saudi Arabia is both the head of state and government, as well as commander in chief of the Saudi military. The country has been under the leadership of the Al Saud dynasty since its foundation in 1932. The current leader of Saudi Arabia is King Abdullah, whom ascended into leadership in 2005 after the death of his half-brother, King Fahd. Due to the country being an Islamic state, the country follows the Islamic law (Shari’ah) as a basis to govern the people and obey laws. The Qur’an is known as the constitution of the country, as all people within the country follow its Islamic practices. However, in 1992, King Fahd adopted the Basic Law of Governance as the Royal Decree, containing 83 articles emphasizing the responsibilities and duties of the ruling body.
When in power, the King must appoint a Crown Prince to assist him with his responsibilities and is second in line to the throne if the King can no longer lead the nation or becomes deceased. According to CountryWatch, Saudi Arabia’s Political Stability Index receives a score of a 6 between 1 and 10, “based on a given country's record of peaceful transitions of power, ability of a government to stay in office and carry out its policies vis a vis risk credible
Being born and raised in America, I and many other Americans have been taught that we live in a country of freedom. Women and men are treated equally; every human being has rights, and you have the freedom to move at will and without restrictions. Women have come a long way in our country, gaining rights ever since the dawn of patriarchy and proving that they are just as good as men with the ability to think, speak, and act for themselves. However, discrimination of women still exists in America and many other countries, but women are taking a stand and trying to eliminate the inequality between genders, such as the difference in salaries, and the bad representation of and portrayal of women in the media.
Currently Saudi Arabia is one of the leading producers of oil in the world. However, it is losing its foothold on the market. Many countries, like North America, are increasing their oil production and are looking for ways to become less dependent on foreign oil. The increased competition has caused oil prices to decrease. By producing their own oil, countries not only will increase their revenues, but will also reduce their need to rely on foreign oil. By reducing their need foreign an oil a country does not have to worry that their oil supply will be cut off if they go to war.
It goes without saying that throughout society there exists varying degrees of gender stratification. Although many have attempted to understand why this difference between the distribution of property, power and prestige exists amongst genders, the answer is still somewhat ambiguous. Although the United States isn’t a perfect example of equality amongst genders, compared to a majority of nations across the globe, its conditions for both genders are relatively similar. One country notorious for its massive discrepancy in terms of access to property, power and prestige between genders is Saudi Arabia. In Saudi Arabia and a number of Middle Eastern countries, there exists a great deal of gender stratification. According to the 2008 Human Rights
In the Middle East, each country has it’s own form of government. These forms of governments have been consistently changing throughout time. Throughout all the revolutions and overthrows, the national identity of the Middle East has slowly changed, some parts more than others. Over many years, overthrows in countries such as Egypt and Libya have led to a more democratic government. However, many other countries such as Iran and Iraq have remained more oppressive. The Middle East is still changing to this day. For example, Egypt recently overthrew their president Hosni Mubarak. There are also many protests currently going on in Libya.
They get in charge from the bloodline. The longest they remain in charge is until they are dead because i don’t think they can quit. their laws are not made by the president their the king, queen, or empire when they get chosen then they get to make the laws and sometimes there laws don’t go well. They all aren’t treated equally they don’t have the same laws as democracy does. In the monarchy they really don’t have a voice because they really just pick who is able to be in charge of the country the countries there are Korea, and japan.
Until 1973, Saudi Arabia barely participated in international trade, however, during the oil crisis, Saudi Arabia’s economy grew rapidly because of their huge oil reserves (second largest in the world), and their ability to produce far more barrels than any other country. Saudi Arabia is the largest producer and exporter of oil in the world, and produce over 11.5 million barrels a day, over 7.5 million barrels a day more than Canada, at far less of a cost. Canada and Saudi Arabia are allies and benefit from each other. Canada and Saudi Arabia’s trade totals more than $3 Billion, and their market is so big because of Canada’s sanctions on Iran, another oil superpower. Saudi Arabia is Canada’s biggest trading partner in the Middle East. Saudi
The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the
Saudi Arabia and Canada are totally different in the way of choosing the ruler. In Saudi Arabia, people don’t have the right to choose the ruler of the country. For example, when the king die, the members of the family’s king go for
Since the Saudi Arabia is being as Sunni Muslims while Iran is Shia Muslims, causing an immediate hostility and tense relationship between the countries. The differences in the religious and economic, somehow impact the United States. "Shiites make up approximately 10 to 15 percent of the global Muslim population", but in the Middle East the large number is in Iran’s population. Sunnis are the majority. The separation between Shiites and Sunnis dates back to the time of choosing the Prophet Mohammed’s successor. Shiites believe that "leader should be a direct male descendant of the Prophet." on the other hand, Sunnis believe that "leaders can be chosen by the community consensus." The leading points of dispute between Iranian and Saudi Arabian
Unlike Canada, there is no democratic vote for the people to voice their choice of leader. The rulers are chosen according to who is next in line in the specific family.To maintain control over the people, the government has strict rules concerning public assembly and critical views of the regime are not allowed. The army and police force keep the population under control, oftentimes with violence.
The third and final type of monarchy is an absolute monarchy. In an absolute monarchy, the monarchy has supreme and absolute authority to do what it wishes. An example of this occurs in the country of Saudi Arabia. In Saudi Arabia, the royal family can enforce any law it wishes- no matter how bad it could be for the country. Absolute monarchies are often very oppressive to its people. For example, Saudi Arabia has very strict laws that have been put in place by the royal family. The people living in the country have no voice in an absolute monarchy.
Saudi Arabia has an economy that is largely dependent on oil, with the government maintaining the biggest control over the country 's significant economic activities. Saudi Arabia owns about 16% of the global oil reserves and is the number one exporter of oil (Saudi Arabia, 2013). In addition, the Kingdom of Saudi Arabia was instrumental in the formation of the OPEC (Organization of the Petroleum Exporting Countries) group, which initially comprised Iraq, Venezuela, Iran, Kuwait and Venezuela (Energy indicators, 2004). Currently, the petroleum industry constitutes about 80% of the country 's budgetary incomes; about 40% of the country 's GDP and 87% of Saudi 's export earnings. Agriculture, in addition to petroleum products, has been a major contributor to the kingdom’s economy since 1970s (Saudi Arabia, 2013). The country has been able to produce enough agricultural products for their consumption as well as surplus for exportation to the GCC member countries.
In the heart of the Middle East is a country known by many Westerners for its oil production and, often, extremist beliefs of groups within the country. The country is Saudi Arabia, and though it is thought of by many as a rather backward country, Saudi Arabia has a rich history and culture, and it is a country that revolves around Islam and the worship of Allah as the one true God.
Though the Saudi National holds majority of the interest, he is neither involved in any financial investments nor is he held responsible for any financial liabilities. The Saudi National acts as a silent partner and deals all the government related jobs. The products for doing the business is imported from many countries mainly China. The geographic location of Saudi Arabia with respect to China makes it simple for the business to be done. Nearly 27% of the electrical Equipments for commercial and Industrial usage have been imported from China (http://www.tradingeconomics.com/saudi-arabia/imports). The main mode of transport from china to Saudi Arabia will be shipping. An agency for port clearance and distribution will be used for clearing the items from the seaport and for supplying it to the facility. The fee for the agent is negotiated between the agent and the business owner. This business will be started in as a small scale with 5 employees including Manager, Accountant and 3 sales staff.
This report will analyze the Supply Chain and Logistics Industry in the United Arab Emirates during the last five years. The tools and techniques used for this analysis shall be PESTEL and PORTER’S 5 forces. Further this report shall discuss about the Industry type based on the competition existing in the market and its current phase in the Industry cycle.