International Business In Saudi Arabia Business Essay

This research newspaper efforts to find article in magazines that pertain to Saudi Arabia and the associations they have in international business. The magazine articles are picked relative to the topic under research and the summation is provided. Saudi Arabia being truly a strategic spouse in international business has been around the forefront to promote it insurance agencies in place political, legal, monetary and social-cultural environment where such can thrive. In this value, the paper analyses cases that have been reported in the mass media and which relate directly to the scope of international business.

1. WHAT'S International Business

Cover web page:

May 18th 2011

Global economic local climate brightens again, ICC/Ifo survey reveals

Paris, 18 May 2011

Article Summary:

The article expresses that the global financial climate indication stands at 107. 7 items in April, 2011 which is much much higher within the last couple of years. The figure is derived from a study of 1000 economists in over 120 countries where they taken care of immediately positive global economic growth. There are however factors that may impact this optimism such as budget deficits, high inflation and unemployment. The ICC (International Chamber of Commerce) secretary attributed this as an indicator of economic restoration. He urged governments to interact to encourage a multilateral trading system that helps global economic expansion.

Although rates of interest are expected to go up, emerging economies are worried but this will not affect the buyer prices much. The only risks that are anticipated include excessive motions in international capital and potential olive oil price shocks due to tensions in resource. (Take note: Saudi Arabia can be an engine oil producing country). The entire economic growth on the planet is likely to reach 3. 2% in 2011.

Among the countries to reap the benefits of this will be the US in terms of work and increased production. The Asian countries may neglect to realize benefits for a while since they expect expansion in private use, capital costs and exports to weaken. In European countries, benefits will materialize especially after the Euro stabilizes. Perhaps the most interesting part is the observed improvements in Saudi Arabia between other neighboring countries.


International business entails all commercial deals that appear between several countries or parts in a way that the political boundary is crossed. The business may be incorporated in areas such as private and administration sectors, opportunities, logistics and travel, and sales in a variety of products. The reason behind doing international business differs in regards to who is participating for occasion private corporations take action for profit while governments seek income and political benefits. In general, economic resources get transacted across edges in form of skills, capital and folks in order that they enable production in bank, insurance, structure and finance sectors amongst others.

This article is pertinent to international business since it recognizes the role specific countries play as well as the factors of economic growth. It is evident that so long as specific countries economies are successful, such countries are bound to trade with one another. Saudi Arabia as an olive oil producing country has within the recent times been affected by the declining monetary growths in many countries all over the world. But due to the fact international business entails trans-border transaction such as exporting olive oil, (a source), Saudi Arabia will over time engage and derive profits at a higher scale.

Critique and Insight:

Despite the implication that world economies are in the verge of expansion, Saudi Arabia may still have to wait a bit longer before it can totally benefit from the benefits. In this particular same article, the issue of currency values is described albeit shallowly. Essential oil as it may result from Saudi Arabia may meet market in crisis in regards to disagreements over currency undervaluation. This in effect means a country like Saudi Arabia in its seek out international market should be aware of such issues as well as high rates of interest and inflation.

Attached Article:

http://www. zawya. com/story. cfm/sidZAWYA20110518133330

2. Globalization of Markets and the Internationalization of the Firm

Cover webpage:

Bottom of Form


By ARAB Media: Shared: Apr 27, 2011 18:22

Article Overview:

The boutique style exclusive exhibition is very famous between artists, lovers and art pros from all elements of the world. THE CENTER East region is appealing to these from as far as North Africa and South Asia. The eye people are showing towards long neglected skill and contemporary skill in this area has turned into a success account in the international market. Art fair administrator d'Hauteville in Beirut observed that there surely is need for a global event which recognizes the growing demand for art whose sales value is predicted as more than $200 million going back 3 years.

This is the reason why MENASART aspires to give a base in the region for art lovers and collectors so that it can be carried out in a professional and social environment. Painters from Midsection East and North Africa (MENA) are being prompted to get newer media that will drive the local governments. In addition it will provide a repository for global skill and culture permitting them to become world class vacation spot. Metropolitan areas in Qatar, Bahrain and Saudi Arabia are investing a lot in building museums with significant being Nabatt "A FEELING to be" which is modern-day skill from Saudi Arabia.

This exhibition will permit Saudi contemporary skill to see international presence. There also international public sale houses in your community in the making and which are forecast to include all countries in your community. The Video Field in addition has been incorporated where motion pictures and children arts are considered for display. Nonetheless it is not art only that is being considered but also conferences for traders, curators and lovers with an aim to address recent fads in South Asia. They will discuss obstacles that can oversee merging of all musicians and artists in these locations in the light of globalization. MENASART past fair attracted a number of visitors and they expect it to go up in later situations.


Globalization of market s and internationalization of the firm both imply a situation in which a business is exposed such that it can are powered by an international world. It means moving away from just considering local demand and supply but concentrating on a wider area. International business as already mentioned operates across borders.

This article is relevant in the issue of market globalization and internationalization of the firm since it suggests that contemporary had been long neglected. Ahead of embracing boutique style exclusive exhibition it seem to be that MENASART was limited to local market segments; it whatsoever it even took place. But with the beginning of such exhibitions, there's a higher chance that more enthusiasts, sellers and curators will probably be a part of the procedure.

Considering too the eye people round the world have shown interest, it is clear that the market is checking towards becoming global. Consistent with creating and building museums and trade fair the modern industry in simple fact moving from local configurations to being operate on an international size. True to this article, Saudi Arabia especially will experience international presence where their long neglected and less traded art work will be done on an international arena.

Critique and Perception:

This article would have been more resourceful got they indicated a few examples of art work that is associated with MENA regions.

Attached Article:

http://arabnews. com/lifestyle/art work_culture/article374698. ece

3. Organizational Participants that Make International Business Happen

Cover site:

Foreign Policy

The Midsection East Route

Need for a fresh social deal: Put up By Dag Detter, Steffen Hertog: Thursday, May 4, 2011 - 11:00 AM

Article Brief summary:

There are accounts that vast state investments have been misappropriated in the wake of recent uprising in the centre East. The Arabic sector is fermented and numerous attacks are taking place for example in Misr Content spinning and Weaving textile seed. The crony capitalists who've enriched themselves through skewed privatizations offers are also loosing support. The article highlights that mismanaged open public areas have been a pivotal in the uneven growth and corruption.

The Condition Owned Enterprises (SOEs), in some MENA countries making sector have undermined competition thus minimizing expansion. Many companies cannot be fruitful enough to allow reasonable income and dignified work conditions. Their state appointed management is a important cause by allowing cannibalizing of talk about belongings as well as denying employees their bonus items. One Ahmed Ezz has already acquired strategic bits of steel sector by manipulating politics contacts in Egypt.

In every other MENA countries problem has added to companies ending up in looses. In Saudi Arabia, the Saudi Basic Market sectors Company is usually run secretively though effectively. The MENA authoritarian systems have used political conditions in a way that monopolies seem to be to work but more institutionalized formulas by the federal government are needed.

The Business for Economic Cooperation and Development (OECD) has reached a consensus that centralized ownership function is the ultimate way to manage SOEs while at the same time protecting them from political machinations.

Centralization allows conflicts between political and professional imperatives to be dealt with and at the same time enable introduction of professional corporate and business governance skills to be used. The Mother board of Directors is strengthened in its endeavors such that the complete system operates accountably either in cases of success or inability.

In order to work with commercial money effectively, the included commercial borrowing tool will come in helpful. It must however be set in under professional management that may be subjected to inspections and amounts for example in accounting and auditing. Rather than back financing, credit rating and use of bond market will instill more self-control. The National Prosperity Cash have been noticed to produce value internationally if they are well handled and agree to transparency as a central process. Reforms as studies have shown are expected to occur especially in the general public sector and the management of SOEs. They need to also be accompanied by labor market coverage that allows migration from public to private areas and at the same time allowing cultural security.


This article is pertinent to the topic accessible since it addresses the organizational participants that produce international business happen. In the article introduction, it is shown how different companies in MENA region including Saudi Arabia are being run corruptly resulting in their collapse. Since the topic is dealing with organizational participants the State Owned Enterprises are in this case appropriate examples as they too take part in international business. The general public sector comprises so many organizations which make it possible for international business to take place and if it fails, so does the whole system.

As observed in the article, SOEs including energy, telecoms, travel and real estates form an untapped source of information fro driving monetary growth and transforming the social deal. This in place implies that it is organizations in these industries that donate to a country having the ability to engage in international business. Their management is vital if it is done in an organized and organised manner as the benefits filter down to the economies in the region. This is the reason such ideas as decentralization, competitive insurance policy and deregulation are mentioned as ones that will lead to sustainable profit and competitive prices to residents.

The government on the other brain is observed as the gamer and referee or in other conditions as market participant as well as the regulator. That is based on the topic which discuses organizational participant who eventually allows international business to take place. In cases like this the Saudi Basic Market sectors Corporation has prevailed scheduled to being run effectively but important to note is that the company itself serves the whole region; which is a circumstance of international business.

The OECD is another firm that set a program for international business to occur and it did so in the MENA region where Saudi Arabia is situated. This article further proposes that if companies are run as contained commercial keeping companies, they will perform in the international area as Singapore's Temasek which is a National Wealth Fund did. Finally, both SOEs and the private sector are in real sense contributors to international business in a country. If both are handled well, they become profitable and subsequently will increase beyond the country's borders so as to enjoy international business.

Critique and Insight:

In up to this article traces the sources of the current occasions in the MENA region, it does not give adequate types of how each country is fairing. It could have been appropriate to specify the speed of interaction on the list of MENA member countries in regards to how they do business. It seems that the article is only relying on the decision for politics reform in the working of the general public sectors and working with problem. However I tend to buy into the author when he asserts a regional reform program is necessary especially in the SOEs. Both financial and social enterprises sectors need to be reformed in order to take a global relevance. It is merely through globalization that organizations which play a essential role in international business will be able to complete their goals.

Attached Article:

http://mideast. foreignpolicy. com/posts/2011/04/29/a_new_social_contract

4. Ideas of International Trade and Investment

Cover webpage:

Colombo Site: Sri Lanka Internet Newspaper

Leading Media from Sri Lanka

Saudi delegation to visit Sri Lanka to explore new areas of business cooperation

Fri, May 20, 2011, 10:07 am SL Time, Colombo Site News Desk, Sri Lanka.

Article Brief summary:

The Saudi Arabia's Business and Industry Minister, a Mr. Abdulla Zainal Alizera mentioned that peacefulness in Sri Lanka has managed to get easy for the Kingdom of Saudi Arabia to determine new trade relations. This was mentioned throughout a visit by the Sri Lanka Minister of Industry and Business a Mr. Rishad Bathiudeen in Jeddah. The Saudi minister cited recent unrest in North and East Sri Lanka as having hindered trade however now is willing due to the peace that is realized. The new chapter in trade will be initiated with a Saudi delegation to Sri Lanka with an goal of exploring new areas of cooperation between your two countries.

On the other hands, the Sri Lankan minister has recently identified sectors which trade may take place. Included in these are; tourism, industry, apparel, it, fruits and vegetable cultivation and gem and jewelry industries. The Saudi federal will too volunteer by sending a specialized team to recognize new areas in agriculture under the Ruler Abdullah Effort for Saudi Agricultural Investment Abroad.

The two countries have eventually decided to form an enterprise Council to market bilateral trade which presently stands at $ 246 million. But both countries are hoping to improve on this body and especially the $ 43. 8 million Sri Lanka's export to Saudi Arabia. In the bid to initiate this trade, the Sri Lankan minister has already allowed clothes export to Saudi and they be made corresponding to Saudi businessmen features. He further is positive for the reason that he encouraged trade which would soon deliver attractive gains. The Sri Lankan minister also ventured in to other ministries in Saudi Arabia including the Electricity and Financing ministry in pursuit of international business.


Theories in international trade and investment can be explained in two distinct ways. One of these concerns the national level and handles questions like why countries trade and how they can enhance their competitive border. The other level is solid oriented and looks for to give perception in to why organizations institutionalize and how it helps in giving ecological and competitive border. The various theories protected here include; mercantilism, factor proportions, overall gain, new trade index to mention a few.

This article suits well with theories of international trade and investment because the appointments by the Sri Lankan minister seeks to initiate trade. The idea of mercantilism for illustration is the basis for the visit because Sri Lanka realizes that their nationwide prosperity is the result of a confident balance of trade. Both countries exercise mercantilism in regards to increasing their exports and lessening their imports. Beneath the theory of definite advantage concept, it is visible that the proposal by the Sri Lankan minister that Saudi's import apparel if well founded. Sri Lanka must be aware of the few resources it utilizes in creation of garments and why it seeks Saudi businessmen to buy them.

In respect to the comparative benefit rule, even though Saudi Arabia has an upper hand in circumstance it exports essential oil to Sri Lanka, that will be more expensive, the only cause for their desire to trade is in the price of production of apparel. This concept of expertise will eventually gain both countries; Saudi Arabia in petrol and Sri Lanka in clothes and agricultural creation. Both countries also

Critique and Perception:

This article has an insight in to how international business is set up. It provides a specific glimpse that goes with trade delegations for a certain country going to another. For international business to occur, each participating region must maintain a posture to make deals that can last and be beneficial to both get-togethers. Another notable fact is that peace is vital for trade to occur as is proof by previous failures between the two countries. In addition, countries must be guided by international trade and investment theories to make the most out of trade. Finally the article reveals the likelihood of business that occurs if the initiating party in addition has something to provide throughout bilateral trade. The need for trader councils cannot also be underemphasized.

Attached Article:

http://www. colombopage. com/archive_11/May20_1305866256CH. php

5. The Cultural Environment of International Business

Cover web page:

Arab News. com

Saudi women 'increasing floor after long struggle'


Published: May 12, 2011 01:03 Modified: May 12, 2011 01:03

RIYADH: The late benefits of women's education in Saudi Arabia hasn't limited their potential to make substantial gains and protection under the law.

Article Overview:

Saudi women have now been in a position to reach standard decision making positions in Saudi Arabian administration. In international area they experienced chances as high executives in international organizations however, not at home front side. So many experiences have been circulating regarding Saudi women strive for legitimate protection under the law in education and are well as potential to make personal decisions in their affairs. Historically, it was impossible for them to realize education dreams whereby their culture considered it as an work of sedition and a source of corruption.

According to Islam, women were limited with their husband's will until their loss of life. King Saud however added a great deal by enabling girls to wait schooling and over time many of them took up the task. Currently, many of them have signed up with all areas of investment, authorities ministries, treatments, and engineering and running a business as well.

One Hallima Muzaffar is already an accomplished article writer and virtually critic but confesses the struggle is not over yet. She cites that she still cannot run her own business despite being educated. Furthermore, she laments that the modern culture is ready to open up for everything but also for women. A great many other women in Saudi Arabia promise and try to fight for his or her protection under the law sometimes with little or no success. Finally the article notes that a amount of Saudi women are well placed locally and internationally for example Thuraya Obaid who's in the UNPF and Lubna Olayan, a renowned trader in the international financial market segments.


The culture environment of international business is an essential that should not be overlooked. It entails the understanding of various cultural elements in a country that you is willing to activate running a business with. Such ethnicities may have diverse and new dialects, value systems, tendencies and beliefs. In a cross boundary business, it will always be necessary to have a clue of the life styles, consumption patterns and norms that are quality of people a country intends to deal with. Culture comes about in the initial communication, symbols and ideas they communicate if underestimated could create certain risks.

The dangers in international business associated with culture include country risk, commercial risk, and money risk and cross-cultural risk. Failing to consider carefully each of these risks might result in the trade ties deterioration and eventual death of any business however successful it was. In international business such procedures as developing products and services, communication and connections, screening for overseas distributors, negotiating, advertising and exhibition all must be associated with detailed examination of the culture in question.

This article is very highly relevant to the issue of social environment of international business considering Saudi Arabia has unique culture. It really is evident that ladies in that country are cared for differently as it pertains to their engagement in business. The article points out the many struggles women experience and their plight can be bad for the international business over time. Considering for instance those women in other parts of the world can take part in business and run them profitably, it is ironical why such can't be utilized in Saudi Arabia.

But in essence it's important to understand different cultures as already mentioned prior to initiating business with them. In cases like this, an trader who prefers to engage in a business which involves women roles in the us may be forced to change his brain while coping with Saudi women. That is consistent with understanding the cross ethnical risk associated with international business also to countermand it would entail departing out any participation with Saudi women.

Critique and Insight:

The article offers an insight directly into how different civilizations behave in regard to business. That is very useful so that buyers may seek information on ethnical environment before participating in business that may later pose risks once established. The article however fails to spotlight what Saudi women are in reality doing to promote international business in the light of globalization.

Attached Article:

http://arabnews. com/saudiarabia/article396218. ece

6. Politics and Legal Systems in National Environments

Cover page:

Arab News. com


Human protection under the law issues in Saudi Arabia

Existing sponsorship system no more conforms to the life in the 21st century

Article Overview:

The article discusses human being protection under the law in Saudi Arabia in respect to women, youth and foreigners. Nonetheless it is the political and civil protection under the law part that pertains to politics and legal systems in nationwide environments. The author notes the essential worth of everybody to be free and safe. The proper never to be arbitrarily caught and independence of expression in any business they take part in is emphasized.

Among each one of these rights, the article writer records that the Saudi citizens must be absolve to participate in management of general public affairs either immediately or through elected representatives. Individuals have the right to vote or run for office in reasonable elections as declared in the Covenant on Civil and Political Protection under the law issued by the US in 1966. This article concludes with a question of whether the Saudi government is ready and prepared to make significant political decisions for its people in order that they may participate in any business with their choice.


The political system involves institutions, politics organizations and interest categories and their connections and rules that govern them in a country. This might happen along specific or community configurations where each has allocated rights and functions. It's very common for just about any country to operate along a certain politics ideology such as democracy or a totalitarianism setting. Each of these systems was created to improve specifications of living, communication and economical progress.

But on the other hands, failing of any particular system may lead to risks especially in regards to international business. The potential risks can however be reduced substantially by rousing local economy, offering national employment, and encouraging shared business possession and engaging in activities that show politics neutrality and civility. The legal system too comprises civil, customary, theocratic and common lawful restrictions which are meant to govern how people interact and dissolve disputes. In international business, the intellectual property protection under the law are very important to comprehend as they explain the right of good thing about any tangible property an individual may have created.

This article is pertinent in the way it emphasizes the need for politics systems predicated on legal foundations that are known internationally. In such a system, international business thrives if conditions where human being privileges are upheld and this originates from the politics and legal system that is in place.

Critique and Perception:

The article is well shown and has all the reality that are necessary for international business to take place. A country that denies its citizens basic human being protection under the law cannot enjoy benefits in international business.

Attached Article:

http://arabnews. com/thoughts and opinions/columns/article408235. ece?remarks=all

7. Government Treatment in International Business

Cover webpage:

PH rejects Saudi bet to cut Filipino maids' pay

By Philip C. Tubeza

Philippine Daily Inquirer

6:18 am | Fri, May 20th, 2011

Article Synopsis:

The Philippines has turned down the demand by Saudi Arabia for a pay trim for Filipino maids working in the Kingdom. Corresponding to Labor Secretary, the $400 least salary for maids working overseas will remain regardless of the Saudi government want it reduced to $200. Because of the salary dispute, the Saudi federal has suspended the deployment of Filipino maids to the Kingdom. The matter has been described Geneva where bilateral trade is meant to be reviewed and settled.


The role of the federal government is vital in international business. Government authorities impose restriction in international business due mainly to political, ethnical and economical reasons. In cases where the government wishes its home business in exports to prosper, intervention is essential. Another scenario is during difficult monetary times to be able to reduce imports and for that reason shield its labor force from being laid off.

Political motives are may be cited by way of a federal in international business if it would like to protect jobs, preserve countrywide security, gain influence and to respond to unfair techniques. The monetary motives involved may pertain to protecting incoming companies that are in the growth path or to be able to go after a strategic trade plan. Culturally, the government may intervene in order to protect its national individuality. All these strategy have a simple purpose which is to secure jobs because of its citizenry.

This article is pertinent in that the Saudi government has intervened in the dispute so that its maids may have better terms than those of foreigners. The economical motive is apparent in the article because the Saudi federal government desires job security that could be threatened by the highly paid Filipino maids.

Critique and Understanding:

The article is well offered and bears all facts that would call for a administration to intervene in order to secure its residents jobs.

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