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REPLY 1: reply to the discussion below:
What do you know about Globalization?
Globalization and Its Impact on Saudi Arabia
Globalization is the process of international integration arising from global exchange and
communication. Technological changes, the liberalization of trade and investment policies, and
new global supply chains trigger it. Saudi Arabia’s economy, long dependent on its oil exports,
has been deeply influenced by globalization.
Globalization has significantly altered the economic frontiers and reshaped trade dynamics,
following suit its after-effects within the Saudi Arabian economy. With the country increasingly
integrating into the world economy, it is now using its abundant natural oil not just to maximize
revenue but also as an engine for raising broader economic development. Foreign investment
and technology have also increased because non-oil sectors, like tourism and entertainment
(critical to the Saudi Vision 2030 initiative), have flourished. This move is part of a broader
strategy to build an economy that can absorb the shock from falling oil prices.
In addition, globalization has nudged Saudi Arabia to maximize its global competitiveness by
improving infrastructure, promoting innovation, and investing in human capital. The struggle
remains to reap the rewards of economic interdependence while achieving sustainable
development, which will allow India to compete in a new dynamic and highly competitive global
environment and thrive. While Saudi Arabia grapples with these complexities, the results of its
globalization strategies will have important implications for its economic prospects and global
posture (Altman, & Bastian, 2021).
The Effect of Economic Interdependence on Saudi Arabia
Additionally, Saudi Arabia’s opening up to the global economy came with its own set of
opportunities and challenges. Global trade helped create diversified early international markets
for Saudi exports, particularly in Asian countries, where we continue to see increased foreign
direct investment (FDI) coming into the country. This has supplemented the economy and
fueled job growth, particularly in manufacturing and services.
At the same time, globalization has also exposed Saudi Arabia to external shocks including wide
fluctuations in oil prices and global economic downturns. As an illustration, the COVID-19
pandemic had significant implications for the Saudi economy, resulting in a GDP reduction of
4.1% in 2020. It has also been rivaled more strongly as an oil producer by other countries,
particularly the US and Russia, a factor that has weighed on oil prices and revenues.
Saudi Vision 2030 and International Competitiveness
In response to this new reality, over three years ago, the Saudi government embarked on a bold
economic reform program known as Saudi Vision 2030. The program aims to diversify the
economy away from oil by taking steps, including lowering its reliance on crude and increasing
its competitiveness in global markets (Saudi Vision 2030 Document 2017).
This vision consists of the main points:
• Developing tourism and other industrial fields outside of oil, such as mining and
renewable energy.
• Accelerating privatization and welcoming private sector investment.
• Support in business development and investment project execution.
• Increasing education and training resources to build a workforce consisting of welltrained individuals.
• Improving the quality of life for Saudi citizens through better government services and
infrastructure
The readjustments are meant to raise Saudi Arabia’s position in the global economy and world
stage amidst policy aims to attract foreign investment and talent. However, achieving these
goals will require significant changes besides well-established commercial and regulatory
frameworks and overcoming resistance from vested interests (Saudi Arabia Oil & Gas Report, Q1
2021).
In conclusion, Saudi Arabia has traversed multiple forces of globalization, influencing and
shaping its economy on both fronts. Economic interdependence helped India gain access to new
markets and much-needed investment it has also made the country more vulnerable to external
shocks. Saudi Vision 2030 is an ambitious initiative, far more than selling strategic state assets to
boost the GDP while having little role in globally competing forces that will judge its success. It
can overcome deeply entrenched domestic interests and bulk up on radical reform.
Reference
Chapter 1 in International Economics
Saudi Arabia Oil & Gas Report. (Q1 2021). Fitch Solutions Country Industry Reports , 1-84. Saudi
Vision 2030 Document. (2017). Retrieved
from
Chapter 1 PowerPoint slides – International Economics
Altman, S.A. & Bastian, P. (2021). The state of globalization in 2021. Harvard Business Review
Digital Articles, 19.
REPLY 2: reply to the discussion below:
What do you know about Globalization?
module1_ma
Globalization and Economic Interdependence
Globalization refers to the increasing interdependence among countries, encompassing various
aspects such as economic, political, technological, and cultural exchanges. According to the
content in your file, globalization involves the greater integration of national economies through
the movement of goods, services, people, and investments. This integration has been driven by
advances in technology, the development of international financial markets, and the
liberalization of trade and investment policies.
Impact of Economic Interdependence on Saudi Arabia
Economic interdependence has significant implications for countries like Saudi Arabia. As a
major oil exporter, Saudi Arabia’s economy is deeply integrated into the global market. This
integration means that changes in global economic conditions, such as fluctuations in oil prices
or changes in demand, have direct impacts on the Saudi economy. The content in your file
suggests that while globalization offers opportunities for mutual benefits among trading
nations, it also creates vulnerabilities, especially for countries heavily reliant on a single sector.
For Saudi Arabia, economic interdependence has both positive and negative effects. On the
positive side, it allows the country to benefit from global demand for oil, driving economic
growth and enabling investments in infrastructure and social services. However, the downside is
that the economy is highly sensitive to global economic shifts, which can lead to instability if oil
prices drop or if global demand decreases.
Saudi Vision 2030 and International Competitiveness
Saudi Vision 2030 is a strategic framework aimed at diversifying the Saudi economy away from
oil dependency and enhancing its global competitiveness. The relationship between Saudi
Vision 2030 and international competitiveness is crucial. By focusing on sectors such as tourism,
entertainment, and technology, Vision 2030 seeks to reduce the economic risks associated with
global oil dependency and to position Saudi Arabia as a competitive player in various global
markets.
The drive toward diversification under Vision 2030 is in line with the broader trends of
globalization, where countries strive to enhance their competitive advantage in the global
economy. This strategic shift is intended to make Saudi Arabia more resilient to global economic
changes and to attract international investments, thereby fostering sustainable economic
growth.
References:-
Raikhan, S., Moldakhmet, M., Ryskeldy, M., & Alua, M. (2014). The interaction of globalization
and culture in the modern world. Procedia-Social and Behavioral Sciences, 122, 8-12.
Jensen, Lene Arnett, Jeffrey Jensen Arnett, and Jessica McKenzie. Globalization and cultural
identity. Springer New York, 2011.
What do you know about Globalization?
Globalization and Its Impact on Saudi Arabia
Globalization is the process of international integration arising from global exchange and
communication. Technological changes, the liberalization of trade and investment policies, and
new global supply chains trigger it. Saudi Arabia’s economy, long dependent on its oil exports,
has been deeply influenced by globalization.
Globalization has significantly altered the economic frontiers and reshaped trade dynamics,
following suit its after-effects within the Saudi Arabian economy. With the country increasingly
integrating into the world economy, it is now using its abundant natural oil not just to maximize
revenue but also as an engine for raising broader economic development. Foreign investment
and technology have also increased because non-oil sectors, like tourism and entertainment
(critical to the Saudi Vision 2030 initiative), have flourished. This move is part of a broader
strategy to build an economy that can absorb the shock from falling oil prices.
In addition, globalization has nudged Saudi Arabia to maximize its global competitiveness by
improving infrastructure, promoting innovation, and investing in human capital. The struggle
remains to reap the rewards of economic interdependence while achieving sustainable
development, which will allow India to compete in a new dynamic and highly competitive global
environment and thrive. While Saudi Arabia grapples with these complexities, the results of its
globalization strategies will have important implications for its economic prospects and global
posture (Altman, & Bastian, 2021).
The Effect of Economic Interdependence on Saudi Arabia
Additionally, Saudi Arabia’s opening up to the global economy came with its own set of
opportunities and challenges. Global trade helped create diversified early international markets
for Saudi exports, particularly in Asian countries, where we continue to see increased foreign
direct investment (FDI) coming into the country. This has supplemented the economy and
fueled job growth, particularly in manufacturing and services.
At the same time, globalization has also exposed Saudi Arabia to external shocks including wide
fluctuations in oil prices and global economic downturns. As an illustration, the COVID-19
pandemic had significant implications for the Saudi economy, resulting in a GDP reduction of
4.1% in 2020. It has also been rivaled more strongly as an oil producer by other countries,
particularly the US and Russia, a factor that has weighed on oil prices and revenues.
Saudi Vision 2030 and International Competitiveness
In response to this new reality, over three years ago, the Saudi government embarked on a bold
economic reform program known as Saudi Vision 2030. The program aims to diversify the
economy away from oil by taking steps, including lowering its reliance on crude and increasing
its competitiveness in global markets (Saudi Vision 2030 Document 2017).
This vision consists of the main points:
• Developing tourism and other industrial fields outside of oil, such as mining and
renewable energy.
• Accelerating privatization and welcoming private sector investment.
• Support in business development and investment project execution.
• Increasing education and training resources to build a workforce consisting of welltrained individuals.
• Improving the quality of life for Saudi citizens through better government services and
infrastructure
The readjustments are meant to raise Saudi Arabia’s position in the global economy and world
stage amidst policy aims to attract foreign investment and talent. However, achieving these
goals will require significant changes besides well-established commercial and regulatory
frameworks and overcoming resistance from vested interests (Saudi Arabia Oil & Gas Report, Q1
2021).
In conclusion, Saudi Arabia has traversed multiple forces of globalization, influencing and
shaping its economy on both fronts. Economic interdependence helped India gain access to new
markets and much-needed investment it has also made the country more vulnerable to external
shocks. Saudi Vision 2030 is an ambitious initiative, far more than selling strategic state assets to
boost the GDP while having little role in globally competing forces that will judge its success. It
can overcome deeply entrenched domestic interests and bulk up on radical reform.
Reference
Chapter 1 in International Economics
Saudi Arabia Oil & Gas Report. (Q1 2021). Fitch Solutions Country Industry Reports , 1-84. Saudi
Vision 2030 Document. (2017). Retrieved
from
Chapter 1 PowerPoint slides – International Economics
Altman, S.A. & Bastian, P. (2021). The state of globalization in 2021. Harvard Business Review
Digital Articles, 19.
REPLY 2: reply to the discussion below:
What do you know about Globalization?
module1_ma
Globalization and Economic Interdependence
Globalization refers to the increasing interdependence among countries, encompassing various
aspects such as economic, political, technological, and cultural exchanges. According to the
content in your file, globalization involves the greater integration of national economies through
the movement of goods, services, people, and investments. This integration has been driven by
advances in technology, the development of international financial markets, and the
liberalization of trade and investment policies.
Impact of Economic Interdependence on Saudi Arabia
Economic interdependence has significant implications for countries like Saudi Arabia. As a
major oil exporter, Saudi Arabia’s economy is deeply integrated into the global market. This
integration means that changes in global economic conditions, such as fluctuations in oil prices
or changes in demand, have direct impacts on the Saudi economy. The content in your file
suggests that while globalization offers opportunities for mutual benefits among trading
nations, it also creates vulnerabilities, especially for countries heavily reliant on a single sector.
For Saudi Arabia, economic interdependence has both positive and negative effects. On the
positive side, it allows the country to benefit from global demand for oil, driving economic
growth and enabling investments in infrastructure and social services. However, the downside is
that the economy is highly sensitive to global economic shifts, which can lead to instability if oil
prices drop or if global demand decreases.
Saudi Vision 2030 and International Competitiveness
Saudi Vision 2030 is a strategic framework aimed at diversifying the Saudi economy away from
oil dependency and enhancing its global competitiveness. The relationship between Saudi
Vision 2030 and international competitiveness is crucial. By focusing on sectors such as tourism,
entertainment, and technology, Vision 2030 seeks to reduce the economic risks associated with
global oil dependency and to position Saudi Arabia as a competitive player in various global
markets.
The drive toward diversification under Vision 2030 is in line with the broader trends of
globalization, where countries strive to enhance their competitive advantage in the global
economy. This strategic shift is intended to make Saudi Arabia more resilient to global economic
changes and to attract international investments, thereby fostering sustainable economic
growth.
References:-
Raikhan, S., Moldakhmet, M., Ryskeldy, M., & Alua, M. (2014). The interaction of globalization
and culture in the modern world. Procedia-Social and Behavioral Sciences, 122, 8-12.
Jensen, Lene Arnett, Jeffrey Jensen Arnett, and Jessica McKenzie. Globalization and cultural
identity. Springer New York, 2011.
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