Economic Analysis

In: Business and Management

Submitted By gatwiriK
Words 2959
Pages 12
Economics Analysis of Saudi Arabia
History of Saudi Arabia
Saudi Arabia is a member of the Gulf Cooperation Council (GCC) (Bowen, 2008; Fasano and Iqbal, 2003). The country traces its origin back to the early empires of the Arabian Peninsula, which is an ancient trade centre. At present, Saudi Arabia serves a key role in the Islamic world, as it is the birthplace of Islam and the place where Mecca and Medina are located. Thus, the country frequently receives Islamic visitors during the annual Islamic Haj, as it owns the holy city of Mecca. The modern Kingdom of Saudi was established by King Abdulaziz Al-Saud, in 1932, and since then, the Kingdom has grown from a desert nation to a recent, classy state and a chief player on the global stage.
Since time immemorial, Saudi Arabia has been an essential stake of the Arab world. Its huge supplies of oil and close links to America guaranteed its place, since the times of the cold war till when a wave of turbulence bust in Tunisia, during the month of January 2011, and touched the entire region. Currently, the ruling family in Saudi is experiencing a different world, anxiously.
Early this month, Saudi Arabia pronounced the demise of Prince Nayef bin, who was a dedicated minister in the war against Al Qaeda and who was ignorant to change of democracy. After a few days, Prince Salman replaced him as the Crown Prince. Salman had served as a governor of Riyadh for almost 50 years ahead of his endorsement to the ministerial seat.
Saudi Arabia, as the greatest changing economy in the world, has experienced rising momentum and credit for its economic revolution. Within a phase of four years, the World Bank's Ease of Doing Business Index, in Saudi Arabia, has climbed from 67th to 13th rank and is presently the leader, in the Middle East (Balaz and Londarev, 2006; Emirates 24/7, 2012). Saudi Arabia holds the 7th and 3rd…...

Similar Documents

Boq Economic Analysis

...BoQ to rise capital funding relates to the economic component of the PEST model. The significant performance fluctuations between last year’s profits as compared to this year’s potential loss, which is approximated to be $91m, can be explained to be consequential of the highly unstable economic environment (Johnston 2012). Factors such as post GFC strains including significant drops in consumer confidence and credit shortages are still prominent in many different sectors of the market (Reuters. 2011). For BoQ in particular, it was it’s adverse exposure to the ‘property market bust in the tourism hot spots’ that unfavourably affected its profitability (Johnston 2012). However, fortunately for the bank institutional investors were able to raise $284 million and pick 92% of the banks entitlements (Johnston 2012). This strong support can be seen as a direct result of the bank’s diverse CSR operations. The bank’s diversification into programs such as carbon pollution reducing activities for the environment and ‘Banking on our kids’ programs to raise money for hospital foundations greatly assist in aligning BoQ’s business sector operations with profound community values (Bank of Queensland). Analysis Increasing a bank’s capital reserve not only allows the company to absolve any underlying debt obligations by increasing liquidity but it also increases the bank’s financial stability by softening any economic volatility. Periods of economic downturn, in particular tend to cause......

Words: 671 - Pages: 3

Economic Analysis of Apple Inc

...ECO320-65: CAPSTONE Economic Analysis of Apple Inc Student 2 Cleary University May 14, 2007 ECO320-65: CAPSTONE Economic Analysis of Apple Inc. Introduction 3 Industry analysis 4 Personal computers 4 Computer software 5 iPod and iTunes 5 Company analysis 7 Apple Computers Inc 7 Apple Inc 8 Innovation 9 Profitability 9 Recommendations 11 Personal computing 11 Conclusions 12 References 13 Appendix 14 Introduction The primary purpose of this report is to execute an economic analysis on Apple Inc. We will review the impacts that the competitive market has had on Apple, since it was founded in 1976. This report will detail how Apple Inc. is both a dire example of the adverse effects of monopolistic competition on a company as other companies into the market; as well as an exceptional example the economic rewards yielded by innovation and brand differentiation within a competitive market. An analysis of Apple Inc would be incomplete without reviewing its past and present competitors. Reviewing these competitors will help the reviewer gain insight into comparative advantages held by other companies and the economic impact this has had on Apple Inc. this report will review the industry as a whole in order to understand the impacts of industry level supply and demand upon Apple Inc. The report will briefly examine the impact of market prices and international trade as an aspect of this report. More importantly, it will review......

Words: 2731 - Pages: 11

Economic Analysis

...of the balance of payments. Both imbalances imply a low rate of time discount by both government and society: consumption in the present is forgone in favour of consumption in the future. The paper examines how these imbalances came about, and goes on to consider whether they can be sustained and how they might be redressed. There is no evidence that the rapid capital accumulation has reduced the rate of profit on capital and thus the incentive to invest. However, persistent external imbalance poses a threat to investment if it generates excess liquidity and asset bubbles. The current account surplus rose remarkably in the years 2004-7. This was associated with exogenous increases in competiveness and in saving, both attributable to the economic reform policies. On current policies, the surplus is likely to rise again once the world economy recovers from its recession. This poses three sorts of problems, each of which is examined in turn: difficulties for macroeconomic stabilization policies; risk of capital loss on the foreign exchange holdings; and the threat of retaliation by China's trading partners. A combination of internal and external policies will be required to redress the imbalance. JEL Classification: E21; E22; E61; F32; F41; F51. Keywords: China; investment; consumption; current account; exchange rate; external imbalance; macroeconomic imbalance. i John Knight and Wei Wang China's macroeconomic imbalances: Causes and consequences John Knight and......

Words: 13756 - Pages: 56

Economic Analysis

...http://www.esa.doc.gov/ Economics & Statistics Administration United States Department of Commerce The Economics and Statistics Administration (ESA) plays three key roles within the Department of Commerce (DOC). ESA provides timely economic analysis, disseminates national economic indicators, and oversees the U.S. Census Bureau (Census) and the Bureau of Economic Analysis (BEA). In this latter role, ESA works closely with the leadership at BEA and Census on high priority management, budget, employment, and risk management issues, integrating the work of these agencies with the priorities and requirements of the Department of Commerce and other government entities. http://www.nber.org/data/ The National Bureau of Economic Research Founded in 1920, the National Bureau of Economic Research is a private, nonprofit, nonpartisan research organization dedicated to promoting a greater understanding of how the economy works. The Bureau associates concentrate on four types of empirical research: developing new statistical measurements, estimating quantitative models of economic behavior, assessing the economic effects of public policies, and projecting the effects of alternative policy proposals. The NBER is supported by research grants from government agencies and private foundations, by investment income, and by contributions from individuals and corporations.  http://www.data.gov/ Data.Gov The purpose of Data.gov is to increase public access to high value, machine......

Words: 250 - Pages: 1

Economic Analysis

...are several resources available to gather historical economic data as well as to forecast economic data. Six valuable and useful resources are addressed below. These resources are used to identify and evaluate Gross Domestic Product (GDP), Real GDP, Nominal GDP, the unemployment rate, inflation rate, and the interest rate. The Bureau of Economic Analysis The Bureau of Economic Analysis is a comprehensive resource that thoroughly defines the Gross Domestic Product. It explains the history and how it is used as a measurement of a country’s economic health. It explains what the current GDP is and goes into detail to explain and compare the changes in GDP from prior periods and what those changes can mean. The site has links that break the GDP down by individual states to quantify output by state. Additionally, the site provides advance estimates for qualitative forecasting. One link in the website refers to a paper that shows in detail how the GDP is used as a tool for “taking the pulse” of the economy (Bureau of Economic Analysis, 2013). Yahoo Finance Yahoo Finance is a resource that provides quantitative forecasting. There are links from basic to detailed providing current GDP information such as time, price, lows, highs, volumes, and charts for Real GDP. Real Gross Domestic Product is an economic assessment that involves qualifying the inflation adjusted market value of goods and services produced by an economic system during given time. A business may use the real...

Words: 813 - Pages: 4

An Economic Analysis

...Introduction: When people purchase a cup of coffee in cafes, they also reserve the right to a seat for them to enjoy the coffee. In that sense, the money a consumer pays in the café is not only for the cup of coffee but also for the seat that he or she may or may not use. In economic terms, the coffee and the seat can be seen as complements. Consumers pay for an “invisible” bundle, which is composed by a cup of coffee and a seat. For café owners, their goal is to maximize their profit. Hence, the cost of the seat, which seems to be free, is actually contained in the coffee price. This is the traditional strategy of a café (“first strategy” in latter passage). However, a phenomenon is observed in China. With the increasing number of freeloaders, people who enjoy the seat without any purchase, private firms start to use a new strategy (“second strategy” in latter passage). They charge a sitting fee, which costs less than a typical cup of coffee, to those freeloaders. It is clear that such a policy is implemented to guarantee the café’s profit. As Singapore is also starting to observe an increasing trend of freeloaders, we are interested in which strategy is more suitable to be implemented by café. Research method & Survey: Our research is based on the hypothesis that the second strategy is going to be implemented in Singapore. Since coffee remains the same in the two strategies, we are going to draw our conclusion by analyzing a consumer’s willingness-to-pay for......

Words: 1628 - Pages: 7

Intro to Economic Impact Analysis

...Economic Impact Analyses analyze the economic effects of a particular project in a particular area. This analysis can cover a region as small as a neighborhood and as large as the world. The main variables analyzed include revenue, profits, wages, and jobs. They consider the direct impact the economic impact has on an area as well as indirect impacts. For instance, you can analyze the total number of employees a firm will hire if it builds a new factory. You can also analyze what this increase in employment will do to other non-related industries in the area. These newly employed workers will have more money to spend at a local store which will in turn create more profits and potentially more jobs. It typically analyzes activity before the project and after the compare the changes and the impact of the project. This is typically done by measuring the difference in economic activity assuming the economic event occurs and then assuming it does not occur. This is called the counterfactual case. An economic event can be defined as a new business moving into a region, a new policy or government program, or any other activity that produces some sort of profit. This is useful to determine if a particular project is worth investing in (Southwestern Oklahoma State University, 2012) . The main types of impact analysis include output impact, value added impact, labor income impact, and employment impact. There is also a property value impact. An output impact measure the total......

Words: 2004 - Pages: 9

Economics Analysis

...Economics Analysis: Obamacare One of the hottest topics right now on everyone’s mind is the issue of healthcare and just who’s responsibility is it provide it and who is entitled to receive it. Our system is broken. We have veterans going without proper care, facilities closing, the cost of healthcare rising, and the amount being paid to doctors is rising. Republicans do not feel it is the government’s right to force Americans to have healthcare and Democrats want it available to all and affordable. Christians are seen as conservatives and unwilling to compromise and unwilling to compromise. I questions whether or not people truly understand the meaning of a conservative. The main difference between liberals and conservatives is their attitude towards government. Conservatives begin with 1) the presupposition of the existence of God and, accordingly, believe 2) that man is of spiritual origin and nature and of infinite, eternal value. Additionally, although they draw their inspiration from a variety of intellectual traditions, their view of the institutions includes the view that 3) government should be limited in power (Martin, 2006, pp. 232-233). Our country was founded on biblical principles, but we have strayed away from those. We have become soft and accommodating. So what do Christians think of Obamacare and how we should be taking care of thy neighbor as God commands? The biggest contributors to increasing medical expenses currently are: 1) Government regulation,...

Words: 884 - Pages: 4

Economic Analysis

...PAF 3102 Economic analysis Student name: Student ID: Module name: Module code: Module tutor: Due date:   Question one Part A Increasing taxes on cigarettes will lead to reduction of smoking among young men, low income earners, and pregnant women. This will lead to a reduction of house hold expenditures such as smoking healthcare costs. However, it is not a guarantee that the numbers of smokers will be reduced by 50%, this means that the city should not expect $90million revenue on tax. Part B NO, a permanent increase of $ 0.40 on a packet of cigarettes will not have any effect on smokers. This is because the economy is growing and with economic growth there is growth on salaries and wages. This means more population will be able to afford the cigarettes and this will lead to increase in demand. As prices decrease the demand increase, in 5years more people will be able to afford the product since the price will not be equivalent to the standard economic growth. Part C This is true, most of the students depend on their families and guardians. This means that if the price of the cigarettes is increased this will loser the demand of the commodity since most of the students will not afford the same commodity for a long period of time. On the other hand if the price lowers then it will increase the demand of the same commodity since it will be affordable. Question two Part A Subsidy products they affect the market by reducing prices in the market. Before......

Words: 819 - Pages: 4

Economic & Financial Analysis of Nigeria

...Economic and Financial Outlook in 2015 External Shocks Creating New Opportunities FSDH Research January 2015 Economic and Financial Outlook: 2015-2019 1.0 Global Economic Growth: According to the World Economic Outlook (WEO) Update of the International Monetary Fund (IMF), January 2015 Edition, the global economic growth is forecast at 3.5% and 3.7%, for 2015 and 2016 respectively. The forecasts were reviewed downward by 0.3% The IMF forecasts a global economic growth of 3.5% and 3.7% for 2015 and 2016 respectively. relative to the October 2014 WEO. The revisions reflect a reassessment of prospects in China, Russia, the Euro-area, and Japan as well as the weaker activity in some major oil exporters because of the sharp drop in oil prices. The United States (U.S.) is the only major economy for which growth projections have been raised upward. The IMF added that the global growth will receive a boost from the lower oil prices. However, this boost is projected to be more than offset by the negative factors, including investment weakness as adjustment to diminished expectations about medium-term growth continues in many advanced and emerging market economies. The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016, supported by domestic demand due to lower oil prices, more moderate fiscal adjustment, and The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016. continued support from an accommodative monetary policy stance...

Words: 11443 - Pages: 46

Economic Analysis

...prevailed: MRSAom = 4 and MRSKom = 3. Keya can offer one orange to Apu for 3 mangoes and 3 mangoes can give her the same satisfaction as before and the exchange make her better off than before, because she has 1 more mango left. This means the initial situation was not Pareto efficient. Answer no. 06 Suppose in the initial resource allocation, MRSAom = 4 and MRTom = 3. Apu can reduce mango production by 3 units and gain 1 unit of orange. He can exchange 1 orange for 3 units of mangoes and can improve his situation because he gains 1 unit of orange in the process. This again implies that the initial allocation was not Pareto efficient. Answer no. 07 We need government intervention even if the First Fundamental Theorem of welfare economics is satisfied because the initial allocation of resources can lead to a point on the grand utility possibility curve, which sustains a very unequal distribution of income and puts the economy on a lower social indifference curve. The government can change the initial allocation of resources such that the distribution of income can be made socially desirable without affecting the Pareto efficiency condition. Answer no. 08 The situation in which price becomes greater than marginal cost, as in a monopoly market, cannot be Pareto efficient because marginal valuation of the consumer for the commodity as expressed by MRS exceeds MRT and in this situation the society’s total welfare can be increased by increasing the production of the......

Words: 1052 - Pages: 5

Economic Analysis

...In any business organization there are two different environments, internal and external environment. Both environments are affect the business in their own ways. The External Analysis examines opportunities and threats that exist in the environment and can be influenced by many factors for example, politically, socially, legally and culturally. Both opportunities and threats exist independently of the firm. External environment can be studies into two parts, general and immediate environment. Firstly, general environment which involves economic, political, legal, and social. Secondly, immediate environment which involves suppliers, competitors, labor, market, and financial intuitions. 1. Environmental analysis: This analysis is divided into five areas: economic, technological, political-legal, sociocultural, and future. Goal: To identify external opportunities, threats, trends, and strategic uncertainties(Marketing and Its Environment, pg 44) Economic What economic trends might have an impact on business activity? (Interest rates, inflation, unemployment levels, energy availability, disposable income, etc) Technological To what extent are existing technologies maturing? What technological developments or trends are affecting or could affect our industry? Government What changes in regulation are possible? What will their impact be on our industry? What tax or other incentives are being developed that might affect strategy development? Are there political or government...

Words: 640 - Pages: 3

Economic Analysis of Shale Gas

...Economic Analysis of Shale Gas an Industry Alternative By Lillian Ashford & Bridget M. Chow Professor Nelson Altamirano, Ph.D. National University ECO 607 Economics for Managerial Decision-Making December 11, 2011 Introduction Shale gas is natural gas that is trapped in shale formations. Shale particles are fine grained sedimentary rocks that are rich sources of petroleum and natural gas. In the past, it was not economically viable to produce shale gas; however, with technological advances and the forward thinking perceptions of reducing our ecological footprint, the process has become more economical due to horizontal drilling and fracturing. The natural gas industry in the United States has been revitalized as a result of the production of natural gas from shale formations. In 2009, shale gas represented approximately 14% of the United States total natural gas supply. The production of shale gas is expected to increase and make up approximately 60% of the (U.S.) total natural gas supply by 2035. The question to ponder is whether or not shale gas is a viable energy option for the United States to consider in reducing the energy dependence of the Organization of Petroleum Exporting Countries (OPEC) while increasing fiscal responsibility and economic viability in both the short and long run analysis? Economic Analysis The shale gas industry has contributed to the economy in terms of jobs, economic......

Words: 1290 - Pages: 6

Economic Analysis of Apple Inc.

...Introduction The primary purpose of this report is to execute an economic analysis on Apple Inc. We will review the impacts that the competitive market has had on Apple, since it was founded in 1976. This report will detail how Apple Inc. is both a dire example of the adverse effects of monopolistic competition on a company as other companies into the market; as well as an exceptional example the economic rewards yielded by innovation and brand differentiation within a competitive market. An analysis of Apple Inc would be incomplete without reviewing its past and present competitors. Reviewing these competitors will help the reviewer gain insight into comparative advantages held by other companies and the economic impact this has had on Apple Inc. this report will review the industry as a whole in order to understand the impacts of industry level supply and demand upon Apple Inc. The report will briefly examine the impact of market prices and international trade as an aspect of this report. More importantly, it will review specialization is undertaken by Apple Inc and the economic benefits gained by this course of action. Essentially, the economic view of Apple Inc is looking a company set within the market structure of monopolistic competition and how it has successfully used innovation and branding to turn itself into a pseudo-oligopoly despite competitors continually entering the market. Industry analysis Reviewing Apple Inc involves investigating the......

Words: 2609 - Pages: 11

Economic Analysis of Teas Stall

...Chapter 6 Economics analysis of data Variable cost A corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output. Fixed costs and variable costs comprise total cost. According to our analysis the fixed cost of the raw materials is as follows: INPUT | COST | Gas Cylinder: | 2800 | Milk | 9600 | Water | 750 | Transportation | 300 | Light | 200 | Matchstick | 675 | Tea | 3600 | Suger | 1710 | Ginger | 120 | Disposal | 300 | Glass | 12 | Biscuit | 1620 | Cigarette | 9990 | Beedi | 9825 | Tobacco & Chocolates | 4800 | Total Variable Cost | 46302 | Fixed Cost A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of a good or service, along with variable cost. One Time Investment | Cost | Stove | 550 | Shop | 11000 | Cylinder | 4500 | Tea Container | 300 | Milk Container | 350 | Hut | 5000 | Stool | 780 | Total Cost | 22430 | Implicit Cost A cost that is represented by lost opportunity in the use of a company's......

Words: 1004 - Pages: 5

Watch Movie | Ch. 150 - Chapter 150 | Grey’s Anatomy Saeason 13 Completed