preview

When determining whether a country could be a suitable partner to establish business relations

Better Essays

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

Get Access