Institution Name: Jorge H. Steele
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Answer-1
Saudi Arabia with an official name of Kingdom of Saudi Arabia (KSA) is basically an Arab Sovereign state located in Western Asia. It is known as the 2nd largest Arab estate which is very large. Saudi Arab’s economy is very important for the world merely because of their Oil enriching concept. The country has had seen many ways and methods through which they can manage their economic policy in particular. It is known as one of the economically stable countries of the world, wherein the level of Health and Development Index (HDI) is locating n the highest level. However, the factor of income distribution is still a question mark for the country (Andreasen et al. 2003).Saudi Arab is an Oil rich country, and the second largest exporter of Oil throughout the world after Iraq. The oil policy of Saudi Arab has changed dramatically due to many of the influences. This particular part of the assignment is divided into two main factors. Firstly, it is likely to identify the main recommendations regarding the management of the oil policy of the country, followed by the analysis of the major challenges faced by the country in terms of their foreign policy in the year 2002.
Recommendation to the management of Oil Policy
This particular part of the assignment is likely to recommend Crown Abdullah to manage their oil policy in an efficient manner. Some of the major recommendations are as follows.Strong Ties with the Muslim World
One of the major problems that highlighted in the Arab world that also defined in the case study is the Cohesion among the Muslims. Saudi Arab is inevitably the most important Muslim country of the world that acknowledges and recognize by every single Muslim country of the world. Instead of influencing the Muslim world to respect Saudi Arab due to the two Holy Cities, Saudi Arab should do something to strengthen the ties with the Muslim World. One of the major examples of inefficient ties is with Iran (Cravens & Piercy 2006). In fact, the Saudi Visa Authority doesn’t allow Iranian to come to the country and pray in Makkah and Medina. The Oil Policy of the company will be managed with perfection, if the ties among the Muslim World will be on a higher level. The problem is that most of the Oil exported to the Western World, especially in the United States, and Saudi Arab is under severe burden of the external payment of the United States. Strong ties with the Muslim world will enable the country expand their operations in different parts of the world, especially among the Muslim world through which they can easily diversify their risk.Proper Diversification
Saudi Arab is an Oil Rich country, which is one of the biggest advantages that the God has awarded to them. It means that the world cannot drag an inch to them in terms of economic well-being. Saudi Arab’s military is not as efficient as it should be (Case & King 2011). The country still lags behind in the making of Nuclear Bomb, which has now become a major necessity in the current world. The sanctions from the Super power like the United States cannot affect the economy from any mean, as they have every single thing that requires important for the economic well-being. The export of Saudi Arab has decreased heavily in the current economic times because of uplifting of the sanctions from Iran, which is yet another major Oil rich country. Western World cannot sabotage Saudi Arabia from the Sanctions, but they can sabotage them from pushing other Muslim countries towards their exploitation. Hence, the time has come when there is utter need of diversification is required from the country. It is recommended to the country to apply large amount of budget to their Military to strengthen their current position and makes them more integrated and efficient against other Military of the world. One of the countries that can help Saudi Arab in this particular aspect is Pakistan, which has one of the largest and strongest armies of the world, and the strongest armies in the entire Muslim World. Pakistan is also a Nuclear Power that can help Saudi Arab to build one in order to restrict the external attacks over the country. Moreover, the complete reliance over Oil should be managed and changed completely. There are numerous other sectors through which Saudi Arab can generate income for them and contribute in their Gross Domestic Product (GDP) Growth. The diversification can be manage in the Financial, Banking and Tourism Industry, which is still very weak within the entire country. The God has given them the opportunity by giving them two major, famous and beautiful cities like Mecca and Medina wherein Millions of Muslim comes together for the prayer purpose. There is a need to increase the tourism factor within the country, and makes the visa processing and other factors very easy to attract more and more people from different parts of the world.Change their Monarchy to complete Democracy
The major problem that found in the scenario of Saudi Arab is absolute monarchy within their political level that may create different issues for the country. It is advised to the country to completely change this behaviour and move completely towards the Democracy, wherein the people have complete rights and independence of everything. Other Muslim countries like Libya and Egypt suffered the same problem of monarchy, however, they have now completely overcome on the problem(Case & King 2011). The same factor is applicable on the scenario of Saudi Arab that needed to be change as well for their utmost productivity and long term efficiency. All of these recommendations are essential for the country through which they can easily overcome on these issues completely for their complete efficiency and productivity.Challenges of Foreign Policy
There are numerous policies that found interactive in a country. Among numerous types of policies, there is yet another part of Policy with the name of Foreign Policy. By definition, the policy that associated with the management of foreign affairs of a country is known as Foreign Policy. There is a strong connection and relationship among the foreign policy and efficiency of the country in particular (Conti &Giaccaria2013). The same is applicable over the scenario of Saudi Arab as well. The demographic and political situation of the entire world has completely changed its pathways after September 2001, when some hundred terrorist attached on the World Trade Centre (WTC) and killed thousands of innocent people. Khalid Sheikh Mohammad (KSM) from Saudi Arab has been found guilty as one of the major master minds behind the attack due to which the foreign affairs of Saudi Arab with the United States had several challenges. The United States which was one of the major exporters of Saudi Arab had completely changed their policy and tilt more of their action towards Iran and India, which was an open threat for Saudi Arab indirectly. The action was taken to isolate Saudi Arab from the world, and because of their weak foreign policy, the Western Powers got succeed in their ideas as well. Due to reliance on the foreign policies of the United States, Saudi Arab had broken the trust of other Muslim countries completely due to which other pressures have come over the screen as well that may derailed their position. There is a serious lacking of the foreign policy in the country that may affect them in the near future, until it is re-design or re-engineered like before with their major exports, like the United States of America.Answer-2
Saudi Arab is currently in a very tense situation. First time in the history, the Balance of Payment factor of the country went in the negative node which is putting more and more pressure over the country in particular. This particular part of the Case Study assignment is also divided into two main factors. The first is about analyzing the position of the country with the United States, Israel and Palestine. However, in the second part, some recommendations are required through which Saudi Arab can overcome on the face of Economic Stability.Relation with the United States
It is becoming more and more important for Saudi Arab to re-organist their relations with the United States. Since, the United States is the super power and the largest exporter of Oil of the Saudi Arab therefore they have to provide everything that can provide them complete satisfaction, especially in the long run(Conti &Giaccaria2013). The Crown Prince Abdullah has a great chance to strengthen their ties with the new Government of the United States. Donald John Trump is a tough person to educate, but still with the help of their previous ties, the country can overcome on their major challenges. In the year 2002, Saudi Arab had a strong ties with the country in which they took Military Weapons from them by exchanging Oil with them. This particular practice should have been started. Moreover, the Military and Intelligence Heads of the country should be in direct connection with the CIA and U.S. Military so that none of the problems like 9/11 could repeat. It is also recommended to the Saudi Officials to increase the viewpoint of Intelligence Sharing with the U.S. Military, as it will allow them to further strengthen their marker in an efficient manner. Relation with the United States is essential for them and for their sustainability in the long run, hence this factor should be managed accordingly.Relation with the Israel
It is becoming more and more important for Saudi Arab to re-organist their relations with Israel. Since, the United States has a great interest in Israel, and it always provide Military Aid to the country, along with the Financial Aids. The Crown Prince Abdullah has a great chance to strengthen their ties with the new Government of Israel. Saudi King has the chance to accept Israel as an independent state and start their Military and trade factors with them as well, likewise other countries of the world. In the year 2002, Saudi Arab had a strong ties with the country in which they took Military Weapons from them by exchanging Oil with them. This particular practice should have been started. Moreover, the Military and Intelligence Heads of the country should be in direct connection with MOOSAD and Israeli Military so that none of the unprecedented event could happen. It is also recommended to the Saudi Officials to increase the viewpoint of Intelligence Sharing with the Israeli Military, as it will allow them to further strengthen their marker in an efficient manner(Conti &Giaccaria2013). Relation with Israel is essential for them and for their sustainability in the long run, hence this factor should be managed accordingly.Relations with Palestine
Palestine is yet another major but very miserable Muslim country located in Arab. It has a border with Israel, and under severe distress against the military problem for the country. The problem is that if Saudi Arab accept Palestine as an independent state or provides aid to them, then they have to be isolated from the United States and Israel. In the current economic scenario, the country cannot dare to initiate this particular challenge, because they are still under severe burden and pressure. Unfortunately, in order to increase their sustainability, it is becoming more and more important to leave the pathways of Palestine completely and initiate some strong ties with the Israel and the United States, as it is the only option left for them to sustain their position in the market.Economic Stability Recommendations
Diversification is the best possible strategy through which Saudi Arab can overcome on the current level of challenges and drags them towards the economic possibilities and efficiency, some of the major diversification towards the industries are as follows.Banking and Finance
One of the major fields which is growing very efficiently and positively throughout the world and contributing efficiently in the productivity and economic stability of a country is Banking and Finance. Saudi Arab has a great potential to establish and build this particular industry in their regime, because the country is already very rich and the level of banking and finance would have been increased for them. The country has to welcome high class professionals from all over the world to further strengthen their position in the Banking and Finance industry(Conti &Giaccaria2013). Moreover, foreign investment can also welcome by the company to comply with this particular industry, which has a great contribution towards the productivity of the company.Tourism
One of the major fields which is growing very efficiently and positively throughout the world and contributing efficiently in the productivity and economic stability of a country is Tourism. Saudi Arab has a great potential to establish and build this particular industry in their regime, because the country is already very rich and old in nature with lots of historic structure and things that can attract millions of Muslims in the country. The country has to welcome tourists from all over the world to further strengthen their position in the Tourism industry. Moreover, foreign investment can also welcome by the company to comply with this particular industry, which has a great contribution towards the productivity of the company.Furniture and Jewellery
One of the major fields which is growing very efficiently and positively throughout the world and contributing efficiently in the productivity and economic stability of a country is Furniture and Jewellery. Saudi Arab has a great potential to establish and build this particular industry in their regime, because the country is already very rich and the level of Furniture and Jewellery would have been increased for them. The country has to welcome foreign investment that can also welcome by the company to comply with this particular industry, which has a great contribution towards the productivity of the company.Entertainment Industry
One of the major fields which is growing very efficiently and positively throughout the world and contributing efficiently in the productivity and economic stability of a country is Entertainment like Theme Parks, Carnivals and others. Saudi Arab has a great potential to establish and build this particular industry in their regime, because the country is already very rich and one of the major employers in all over the world, wherein Millions of expatriates work together. The country has to welcome tourists from all over the world to further strengthen their position in the entertainment industry. Moreover, foreign investment can also welcome by the company to comply with this particular industry, which has a great contribution towards the productivity of the company. This particular framework has also used by the United Arab Emirates for their core efficiency and development through which they can manage their well-being in the market with proper effectiveness and zeal factor.References
Andreasen, A. R., Kotler, P., & Parker, D. (2003). Foreign Policy an outlook (pp. 44-53). Upper Saddle River, NJ: Prentice Hall.Cravens, D. W., & Piercy, N. (2006). Foreign Policy an outlook (Vol. 7). New York: McGraw-Hill.
Case, C. J., & King, D. L. (2011). Foreign Policy an outlook 50: A marketing opportunity?. Journal of marketing development and competitiveness, 5(3), 94-103.
Conti, S., &Giaccaria, P. (2013). Local development and competitiveness(Vol. 59). Springer Science & Business Media.
