Question

Identify the political, legal, and macro-economic environment of your importing country Saudi Arabia, and examine the general business environment of Saudi Arabia.

• Type of political system, potential political instability, political rights, freedom status, and economic freedom;
• Type of legal system, level of rule of law, corruption, intellectual property protection, easiness of doing business;
• Economic environment (GDP growth rate, income/capital PPP, unemployment rate, inflation rate, size of middle class, productivity, etc.);
• Trading relationship (history, volume, products) with the United States;
• Identify the following import barriers in your importing country
  • General policy for international trade
  • Level of protectionism in the country

In the end of your presentation, you must provide an assessment of country risk and a conclusion to explain how your analysis of the institutional environment could impact you exporting decision.

Answer 1

The birthplace of Islam which is arabian environment in all levels.saudi arabia 's economic freedom very greater than many arabian countries.most of the previous years it's very free in economy and diversity in economy is a factor of this.
Mainly oil based industry is depend on this country for their all over economic country base.The most of the revenue generated from the oil industry.The foriegn direct investments and also very great efficiency in the public works in large-scale manner also a characteristics of this economy.The economy is directly depend on the oil based extensive bussiness and industries.The GDP of the country mostly from the oil generation industry.On 2019 were estimated to bring down GDP growth to 0.3%, against 2.4% in 2018 this happend because of the OPEC production cut and drone attack against from the saudi arabia refinery.According to the updated IMF forecasts from 14th April 2020, due to the outbreak of the COVID-19, GDP growth is expected to fall to -2.3% in 2020 and pick up to 2.9% in 2021, subject to the post-pandemic global economic recovery.The oil export very low in the case of last year due to this pandemic situation.

The political system of Saudi arabia is very complex and it's based on Saudi government on the king rule.That political system based on set of rules ,regulations and institution under the control of Saudi ministry.The legal and political view point based on the shariath law that is an Islamic law.which govern that country's fuctioning.The women's freedom little bit low in a manner.but it has some improvements also.

Based on the general economic factors like life expectancy is much better that due
to major improvements in healthcare, the life expectancy of the Saudi people has
dramatically increased from 52.7 years in 1970 to 75.05 years in 2015. Over this 45-
year period, the government prioritized the modernization of medicine and quality
of physician training. The Saudi healthcare system has swiftly increased the number
of hospitals and clinics by 9.5 percent in the last five years.
And also they focus to improve in the adult literacy ,infant mortality case and also among Arab nations, Saudi Arabia stands out through its extraordinary increase in human
development. Since 1970, Saudi Arabia has been deemed a “Top 10 Mover” out of 135
studied countries.

The legal system is fully based on islamic law based the level of rules regarding the law regarding corruption and other wrongful acts which is very stricty based on law.The is also having some more regualtion need for doing a new business.

Trading relationship with many countries is widely extensive manner .Mainly exports is oil based and In current period they are liberlised many importent barriers which is lead to an economic freedom.Their main export components based on their valuable natural resources.They are following an protectionism policy for the international trade .because the saudi government barriers and rules and regulation which more favourable and protection to the domestic industries.it help to country's economic development.

So based on the example of Saudi Arabia we can see that it's an effort by which continuosly hard working the economy as whole jointly.That result can view from the growth and development of this country.