Question

Discuss how globalization affects the international business and the economy of Saudi Arabia. How does the Saudi Vision 2030 transform economic barriers to influence more successful companies?

Please add references

Answer 1

Globalization makes positive impact upon the international business and it brings acceleration to the international trade. It is the globalization that has made different nations across the world to form partnerships on bilateral or multilateral basis and work on the basis of comparative advantage. So, it increases the international business activities and helps nations grow in terms of GDP and per capita income. Further, standardization of rules and regulation, accounting practices took place due to globalization in international business.

It is the basis of globalization that the country of Saudi Arabia came up with the plan that is vision 2030 that has started transforming the economy of Saudi Arabia when falling oil prices made royal family to act and the family opted to embrace globalization and encouraged economic activities in the country. As a part of Saudi Vision 2030, the vision has identified the different economic development and planned different development programs such as financial sector transformation program, national transformation program, privatization program, and quality of life improvement programs. These programs helped the Saudi government to channelize the funds, encouraged private investments and partnership between public and private entities. These transformation are backed by financial sector reforms. So, earlier, oil was used to buy everything from others and now, the country of Saudi Arabia has started to produce of its own products & services. As a result, economy is being transformed and self reliance has started to show in the economy.

Reference:

Saudi Arabia: Vision 2030. Retrieved from: https://vision2030.gov.sa/en