In: Economics
Outline why the culture of a country in this case Saudi Arabia might influence the costs of doing business in that country. Illustrate your answer with examples.
With its vast land and attraction to tourists, Saudi Arabia provides many possibilities for international business. Saudi Arabia, the world's largest oil exporter, has used its resources to create a number of bustling cities. Despite its commitment to do business in Saudi Arabia, it has unique challenges. Considering these problems and tackling them head-on will help you improve the likelihood of a profitable company in Saudi Arabia.
Saudi Arabia has a strong Islamic history, and its faith plays a central role in its society. Islamic law is the rule of law of the land. In addition, the vast majority of the population adopt the Wahhabi. This religion forms people's beliefs, how they form relationships, and how they communicate with family, business, and the world. It is important to have a clear understanding of this religion and its values so that you do not make a social false pass based on imprecise assumptions. Taking a cultural awareness class will provide you with the fundamentals of culture and keep you from making a mistake.
Getting this in-depth cultural understanding will help a business build a competitive edge on today's global marketplace. This will also provide companies with a greater understanding of cultural issues and the potential to produce profits by taking into account these differences. Dignity and dignity are at the core of Saudi Arabia 's society. Although some Western cultures may be more relaxed and casual, younger people in Saudi Arabia are required to display respect for their elders, use appropriate titles and demonstrate an acceptable degree of deference. This hierarchical system frequently extends into the corporate world. Only the top executives typically have a decision-making power. Saudi Arabia 's business protocol also specifies that the most senior person should be approached first by a business professional approach.
Companies seeking to do business in Saudi Arabia must also be mindful of the variations in the corporate culture of Saudi Arabia. The Saudis' contact relies heavily on body language and non-verbal expression, including voice tone and periods of silence. Space implies meditation, so it is necessary not to seek to fill this space and oversell it. In addition , corporate meetings are mostly of a less formal type than those in other nations. Such meetings do not conflict with the times of prayer.