Economic Environment of Saudi Arabia Assignment - 1

Economic Environment of Saudi Arabia - Assignment Example However, the high share of consumption occurs in the high-income countries (Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises, 23). An estimate of 1 billion residents are accounted for more than 80% of the global consumption. In Saudi Arabia, an estimate of 4.5 percent of the global population benefits, although it accounts for more than 30% of the global consumption. It is worth noting that developing countries, exhibit accelerating growth and excellent market potentials. In sheer sizes, the developing countries home 80% for the entire world’s population. Based on the needs, 5.5 billion of the national citizens usually aspire to live improved lives. However, the consumptions increase drastically in developing countries, than in the already developed countries. This means that the consumption rate of Saudi Arabia has outpaced high and low income countries in many products groups. Their motor fuel, meat consumption has doubled, and fish consumption has increased drastically since the year 1990. The global credit crisis usually improves the differences ranges. The economies of the huge and low indebted developing nations such as China, and India in contrast to Saudi Arabia and they are improving strongly while developed countries usually struggle with a slow growth of their economic (Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises, 33). The gap between the emerging growth of Asian markets and Saudi Arabia has never increased. However, basing the experience from below the pyramid, the trend signals the developing opportunity for fulfilling the requirements and basic wants of many low-income consumers in the entire world. However, the economy of the Arabian Peninsula has been determined through various contributions of individuals living near the wells and oases. However, through such prospects, it is evident that the slight development is usually presented by the bottom region of the pyramid since it is minimal to be sufficiently profitable for most of the MNEs. The profits are usually constrained considering the need to design and develop low-cost products. These products usually require innovations that blend the old and new technology. The poor countries are the high developing, and they share global consumption that results to the countries occupying the small base. The country's economy dilemma is imposed on how accurately managers estimate the countries potential. The definite resources require that the companies’ invest markets with high potential for profitable performances. Understanding the risk-return tension of global investment option encourages the managers to refine the analysis of economic environments. Managers usually shift analysis from individual level to a collective involvement within the systematic context of the country’s economic environment. In this case, attention is averted from studying the features of individuals understanding of th eir configuration in terms of overall forest. The managers engage in diverse perspectives, and the first focuses on the level of economic systems of Saudi Arabia. This also emphasizes on current policies and practices shape activity (Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises, 38). The second perspective usually entails of dynamic