1: What is the Partnership? What are its Advantages and Disadvantages?
Trade partnership in Saudi Arabia entails the country opening its markets for exporters and importers (Rahman, Chowdhury, and Sadique 48).
An advantage of this partnership is that it allows for specialization in the areas where the country has a competitive production such as in the oil industry. In addition, the country earns access to monetary benefits like oil export revenue. Finally, it enhances great cultural exchange, especially through importation of goods and services that are not common in the local culture (Rahman, Chowdhury, and Sadique 54).
The disadvantage arising from this trade partnership is relying heavily on a particular nation. Moreover, national production may be negatively affected as other international competitors increase in strength due to factors such as political influences and comparative economic advantages. Finally, specialization to some extent is a hindrance to growth (Samargandi, Fidrmuc, and Ghosh 273). In fact, overreliance on imports while focusing on a particular line of production may result in some limitations such as stifled innovation and high unemployment rate.
2: What is the Impact of Partnership on the Economy?
Trade partnership has enabled the country to be among the wealthiest nations in per capita income. In particular, trade partnerships have enabled Saudi Arabia to have a large market for its products. Its vast oil reserves coupled with its low production costs and sound trade partnerships have enabled the country to become a great economic power (Rahman, Chowdhury, and Sadique 51).
3: How the Partnership Affects Saudi Arabia?
The partnership has been important in enhancing Saudi Arabia’s economic success. Notably, the country has been able to maximize on the areas that it has a better competitive advantage. Through the partnership, transfer of knowledge and technology is efficient and investment and economic components are enhanced. As a result, the partnership has enabled Saudi Arabia to become one of the largest export economies in the world. (Samargandi, Fidrmuc, and Ghosh 271)
4: State 4 Names of Companies in Saudi Arabia and Their Location. Briefly, Describe Each Company Explaining the Nature of Their Works & Quot.
Saudi Basic Arabian Mining Company (MAADEN).
This company has its headquarters in Riyadh. It operates in the mining industry. In the mining industry, it is concerned with infrastructure, extraction of gold base metals, and other related businesses.
Saudi Telcom Co (CTC).
This company has its headquarters in Riyadh. It operates in the telecommunication industry. Generally, it offers television, internet, and mobile computing service.
Jabal Omar Development Company (JODC)
JODC is a real estate development company. It operates in the on Umrah and Hajj industry. Its headquarters are in Makkah.
Fourthly, Almarai Company.
Almarai Company has its headquarters in Riyadh, Saudi Arabia. It was established in 1977. It operates in the food industry where it specializes in the manufacture of infants’ formula milk, poultry, pastries, juices, yogurt, and dairy products.
Rahman, M. Arifur, Shah, Saeed Hassan Chowdhury, and Shibley Sadique M. “Herding Where Retail Investors Dominate Trading: The Case of Saudi Arabia.” The Quarterly Review of Economics and Finance, vol. 57, 2015, pp. 46-60.
Samargandi, Nahla, Jan Fidrmuc, and Sugata Ghosh. “Financial Development and Economic Growth in an Oil-Rich Economy: The Case of Saudi Arabia.” Economic Modelling, vol. 43, 2014, pp. 267-278.