Language and Culture for Business

Running head: LANGUAGE AND CULTURE FOR BUSINESS
Language and Culture for Business
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1LANGUAGE AND CULTURE FOR BUSINESS
Introduction
The essay throws light on analyzing the impact of the Arabic speaking world along
with awareness of the economic and cultural diversity. The discussion will be related to the
different opportunities and challenges which are erected by the different foreign entrants and
the investors while they perform business in an Arab country with different instances. The
Arab countries which have been selected in the essay are Saudi Arabia and the application of
the different sectors of business are required to be based on performing business in Saudi
Arabia. Lastly, the ethical challenges are required to be analyzed which is applied to foreign
investors while working in Saudi Arabia.
Impact of the Arabic speaking world (Saudi Arabia) on international trade
Saudi Arabia has tried to maintain a surplus in trade since the year 1967 and as the
Kingdom of Saudi Arabia generates the majority of the revenue from the export of petroleum,
the surplus can rise or fall with price along with the production of oil. After the embargo of
oil of 1973, when the prices of oil increased, the trade surplus rose in a steady manner till
1978. Saudi Arabia along with the different fellow members of Gulf Cooperation Council
(GCC)- Kuwait, Qatar along with United Arab Emirates have been trying to promote the high
level of trade between themselves by removing the different barriers to free exchange of the
different goods and services between the member states (Al-Amer et al. 2016).
In accordance to the same, Saudi Arabia applies more than 12% tax on the imported
goods and this has helped in making the local competitor manufacturers competitive in the
local market. International trade is the exchange of the goods and services between the
various countries and this kind of trade helps in rising to world appropriately. There has been
a scarcity of oil in various countries and regions which is being sorted by Saudi Arabia in an
appropriate manner. The majority of the trade of Saudi Arabia is connected to the United

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States and this had helped them towards the international expansion in an appropriate
manner. As the oil is being supplied from Saudi Arabia to other countries and states has
imposed more than 12% tax and this is the highest tax which is being imposed in the Middle
East which has helped in bringing overall stability in the overall economy positively.
On the other hand, due to the different kinds of trade taxes which are being imposed
on the different export of the goods and services to USA, UK, and other countries, this has
created economic ramifications. There has been a huge influence on politics on international
trade conducted at Saudi Arabia. There is a specific example which has been considered in
order to analyze the rate of ramification in a proper manner.
For instance- There have been major implications of trade of the Canadian-Saudi
Arabia spat which created serious economic ramifications. Indeed, the influence of politics in
international trade has gained acceptance in economics. There was a diplomatic rift between
Saudi Arabia and Canada which led to a rising in diplomatic tensions between two countries
as well. There were specific products import and export which was affected.
Moreover, Canada has a trade deficit with Saudi Arabia and the Kingdom’s imports
were dominated mostly by crude oil. From the above instance, this can be concluded that
crude oil is the hot commodity wherein Saudi Arabia can find new buyers in the market and
if Canada decides to boycott oil imported from Saudi, this will not cause any kind of issues
for Saudi Arabia.
Economic diversity
In the present scenario, this has been noticed that the economic diversity of Saudi
Arabia is not at the peak level as the activities are not being able to attract the different
foreign investors. In the past, it can be noticed that economy of Saudi Arabia is one of the top
twenty economies in the world, however, the entire country is dependent on oil and the

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country has the second largest proven services related to petroleum. However, from the year
2017, this can be analyzed that the growth of GDP has been $800.8 billion which created a
huge growth of 4.1% in the overall growth of the GDP. Furthermore, as per the sector, this
can be analyzed that there has been an increase in GDP in the agricultural sector by 2.6% and
in the service industry, there has been the increase of 53.2% till 2017.
After the surge in prosperity by raising the prices of oil, the economy of Saudi Arabia
is currently at an inflection point which is creating new opportunities for the country to inject
the new type of dynamism into the economy through productivity. Moreover, the investment-
led transformation has helped in ensuring future growth along with employment-related
prosperity in the market effectively. The productivity and investment transformation have
created significant opportunities to transform the economy which has helped them in
becoming more diverse and sustainable in nature. There are several reasons which will help
in proving that economic diversity is being maintained in Saudi Arabia are as follows:
The boom in the price of oil from 2003 to 2013 has fuelled the rising type of prosperity in
Saudi Arabia which has increased the economic diversity of the country. Due to the same,
Saudi Arabia has become the world's 19th largest economy as there has been increasing as the
household income was doubled by more than 75% and this has included job offerings for a
growing number of Saudi women as well.
The fiscal perspectives along with the labor market have created challenging
conditions as there have been different changes in the policies. However, this did not affect
the economy of Saudi Arabia in a negative manner as the fiscal position of the national
government of Saudi Arabia has been successful in different operations as well.
For instance- ALDREES Petroleum and Transport Services Company is one of the
most famous oil companies which have shown economic diversity by becoming a catalyst for