Question

Analyze the political, economic, cultural and legal challenges the company currently faces in any of the country it operates

if we talk about Saudi Basic Industries Corporation (SABIC)

Answer 1

Saudi Arabia basic industries corporation is a subsidiary company of Saudi Aramco based in Saudi arab And work as MNC in middle East countries.

Political:middle east is politically unstable region and thus not a good or enable environment for investment for company as less possibilities of return and enough revenue generation.

Economic:due to war ,violence and low oil prices ,economic reform etc the middle east facing stagnation or low growth around 3%,less economic competitivness and less wages and fast growing rate of population etc. Are some economic challenges to make company enough operatble or profitable.

Cultural: this region is Muslim dominated and thus companies function and other activities directly or indirectly effected by cultural aspect of the region as workers are mainly Muslims. Cultural conflict of sia and sunny also one factor.

Legal challenge: rule and regulations for worker as well as for company is tough and non Nagostiable. If any stockholders related to company not follow the rule and regulations of their related to cultural or economic (taxation) , then legal environment also harsh and may take time to come out from that .