MAN304: Economics Report - Canada vs. Saudi Arabia Analysis

This economics report conducts a comparative analysis of Canada and Saudi Arabia, examining key economic indicators and business environments relevant to international business. The report begins by comparing the ease of doing business, GDP, inflation rates, interest rates, labor force participation, and average incomes of both countries. It then introduces Coles Group Limited, an Australian retail company, and its intention to sell frozen fruits in the international market. The report explores the characteristics of frozen fruits, the current market success, and the economic backgrounds of both Saudi Arabia and Canada. The analysis includes recommendations for Coles Group, highlighting the potential profitability of selling frozen fruits in both countries due to their developed economies and positive trends in fruit imports. The report concludes by emphasizing the opportunities for Coles Group in both markets, considering factors such as ease of doing business and market size.

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

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Table of Contents
Comparative analysis of Canada and Saudi Arabia...................................................................3
Introduction of the company......................................................................................................4
Background of Saudi Arabia......................................................................................................6
Background of Canada...............................................................................................................6
Country A (Saudi Arabia)......................................................................................................7
Country B (Canada)...............................................................................................................7
Recommendation........................................................................................................................8
Reference list..............................................................................................................................9

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Comparative analysis of Canada and Saudi Arabia
According to the recent article published by the World Bank it has been found out that
Saudi Arabia have improved its ease of doing business in the present year by 1.62 percent. It
have known to ranked 92nd among the 190 countries. On the other hand, Canada is known to
rank 22 among the 190 economies in the ease of doing business. The rank of Canada has
deteriorated to 22 in the year 2018. Therefore, it can be said that Canada is a good place for
starting a business.
The gross domestic product is known as the monetary measure of the value of the
market of all the final goods and services which is produced in a period of time. The gross
domestic product of Saudi Arabia is 68,382.71 crores USD in the year 2017. The economy of
Saudi Arabia is known to be one of the top twenty economies in the world. On the other
hand, the gross domestic product of Canada is 1.65 lakh crores USD. The GDP of Canada
known to have grown by 1.8 percent in 2018 compared to the previous year (Albassam
2015). Canada is also well positioned in terms of standard of living.
The inflation rate of Saudi Arabia in the present year is 2.02 percent which have
known to decline from 2.6 percent in 2018. Inflation is known to affect the cost of living,
doing business along with the government bond yields. The present rate of inflation in
Canada is 1.5 percent.
The labour force is known as the total adult population available to the labour market at a
specific time. The Canadian labour market is known to face severe shortages of labour in
2018.
The rate of interest in Saudi Arabia is 2.61 percent and on the other hand, the interest rate of
Canada presently is 1.75 percent.

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The median family income of Canada is around $76,000 where it has been found the income
per person in the west is much higher than in the east. The average income is known to
measure the average income earned per person of a given area. A good average salary in
Canada is $37,213 per year which can also be said that it is $19.08 per hour. The average
monthly income of Saudi Arabia in the recent years have been 10,723 SAR (Niblock 2015).
The labour force participation rate in Canada is around 65 percent. On the other hand, the
labour force participation rate of Saudi Arabia is around 56 percent.
Currently 1 US dollar is equal to 1.33 Canadian dollar and 1 US dollar is 3.75 Saudi Arabian
Riyal
Most education level in Canada is known to begin in kindergarten and then end if post
graduate studies. Till 2014, the literacy rate in Canada was around 99 percent. Primary
education is Saudi Arabia is k known to last for six years and the primary language spoken is
Arabic. The literacy rate in Saudi Arabia is 94.84 percent.
Introduction of the company
Coles Group Limited is an Australian public company which is known to operate in
large number of retail chains. Coles was Australia’s second largest retailer after Woolworth
until it was acquired by Wesfarmers. However, in the year 2018, Coles Group have been spun
off from Wesfarmers. The cooperate operations of Coles are known to take place in
Melbourne. It was founded in the year 1914 in Melbourne by George Coles. It is known to
operate in more than 800 supermarkets throughout Australia. It also has more than 100,000
employees operating in Australia as well as in New Zealand( Colesgroup.com.au. 2019).
Coles online is the online shopping service of the company. Coles and wools worth together
are known to capture more than 80 percent of the market in Australia. In the year 1960, the
first supermarket was opened by Coles in Melbourne.

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For more than over hundred years, Coles have known to provide quality products an
outstanding consumer service and also provide great value to millions of Australians. Coles is
the national supermarket chain providing liquor and is also a convenience retailer in
Australia. Between the years 1986 and 2006, Coles supermarkets had been the brand of Coles
Myer Limited. however, after few years it became a subsidiary of Coles Group. This
particular firm operates as a retailer in Australia which is known to provide fresh food,
groceries along with general merchandise by operating in more than 800 supermarkets. The
company also known to operate as coles.com.au as an online supermarket with different
delivery channels (Colesgroup.com.au. 2019). It also known to provide insurance, credit
cards and personal loans to the families of Australia.
Coles intend in selling frozen fruits in the international market specially in Saudi Arabia and
Canada.
Background to the product
Coles will be selling frozen fruits and vegetables in the international market. Fruits
and vegetables that is need to be frozen are often picked at peak ripeness when they are the
most nutritious ones. Basically, there are no chemicals added to produce before freezing.
These fruits are stored at around -20 degree Celsius whenever required.
Price
The frozen mixed berries are around $4.00 for 500g. similarly raspberries,
blueberries, strawberries, mangoes, bananas, coconut chunks and other fruits are known to
cost similar.
Current market success or failure

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In the present market situation, it has been found out that both Coles and Woolworth
have dominated the Australian groceries. According to a research it has been found out that
every individual is known to spend an average of $100 a week at Coles or wools worth. This
particular supermarket chain is among the country’s largest employers. Though, it has started
as a small business, presently Coles is one of the biggest supermarket china in Australia.
Characteristics
The frozen fruits acts as a flavour agent in the juices and drinks. They are also used in
making healthy smoothies and punches. Sometimes fresh fruits are quite hard to find, in that
case therefore, frozen fruits can be used and they are also available at all the times as they are
preserved.
Background of Saudi Arabia
The economy of Saudi Arabia is known to be the top twenty economies in the world.
It is also known to be dependent on oil as the country is known to have the second largest
petroleum reserves in the world. It also known to have the largest economy in the Arab
world. The oil reserves are also known to be second largest in the world. More than forty
percent of gross domestic product of Saudi Arabia are known to from the private sector.
Millions of foreign people are known to work legally in Saudi Arabia (Hassan and Nassar
2017). However, the gross domestic product of Saudi Arabia is known to fluctuate
dramatically according to the oil price. The foreign direct investment has been allowed from
the mid 1980s.
Background of Canada
Canadian economy is known to be highly developed mixed economy. It is known to
have 10th largest gross domestic product in the world. The economy of Canada is known to be
dominated by the service industry which is k known to employ about three quarters of the

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Canadians. It also has a huge amount of natural resource stored. It is also known s the eight
largest commercial fishing and seafood industry in the world. It is also known as the global
leaders in the entertainment software industry. Canada is known to have affluent, high tech,
industrial society. This country in the present world known to closely resemble the US in per
capita output and is also a market-oriented system. The Canadian economic system generally
combines elements of private enterprise and public enterprise.
Country A (Saudi Arabia)
The recent article of World Bank states that Saudi Arabia have improved its ease of
doing business in the present year by 1.62 percent. It have known to ranked 92nd among the
190 countries. The gross domestic product of Saudi Arabia is 68,382.71 crores USD in the
year 2017. The economy of Saudi Arabia is known to be one of the top twenty economies in
the world. The rate of interest in Saudi Arabia is 2.61 percent. Primary education is Saudi
Arabia is k known to last for six years and the primary language spoken is Arabic. The
literacy rate in Saudi Arabia is 94.84 percent (Lans 2016). It have been also found out that 1
US dollar is 3.75 Saudi Arabian Riyal. The average monthly income of Saudi Arabia in the
recent years have been 10,723 SAR.
Country B (Canada)
Canada is known to rank 22 among the 190 economies in the ease of doing business.
the gross domestic product of Canada is 1.65 lakh crores USD. The GDP of Canada known to
have grown by 1.8 percent in 2018 compared to the previous year. Canada is also well
positioned in terms of standard of living. The present rate of inflation in Canada is 1.5
percent. The labour force is known as the total adult population available to the labour market
at a specific time. The Canadian labour market is known to face severe shortages of labour in
2018. The average income is known to measure the average income earned per person of a
given area. A good average salary in Canada is $37,213 per year which can also be said that

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it is $19.08 per hour. Currently 1 US dollar is equal to 1.33 Canadian dollar. Most education
level in Canada is known to begin in kindergarten and then end if post graduate studies. Till
2014, the literacy rate in Canada was around 99 percent.

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Recommendation
It can be stated that both Saudi Arabia and Canada are highly developed economy.
Therefore, selling fresh fruits in both these countries will be profitable in nature. Since the
ease of doing business rank is much better in case of Canada, therefore it can be said that
Coles will not have much problem is doing business in Canada. On the other hand, Saudi
Arabia is also a vast market for the dry fruit business which will act as an opportunity for
Coles. Both Canada and Saudi Arabia will help in gaining huge profits in the business frozen
fruits. Since, both Canada and Saudi Arabia have been characterized by positive trends in
Spanish Fruit and vegetable exports in the recent years. These two countries are also the main
importers of fruits from the European countries.

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Reference list
Albassam, B.A., 2015. Economic diversification in Saudi Arabia: Myth or reality?.
Resources Policy, 44, pp.112-117.
Colesgroup.com.au. (2019). Coles Group | A trusted retailer, delivering quality value and
service. [online] Available at: https://www.colesgroup.com.au/home/ [Accessed 5 Apr.
2019].
Dobuzinskis, L. and Howlett, M. eds., 2018. Policy analysis in Canada. Policy Press.
Gelil, I., Howarth, N. and Lanza, A., 2017. Growth, investment and the low carbon
transition: A view from Saudi Arabia. KAPSARC Discussion Paper.
Hassan, M. and Nassar, R., 2017. EMPIRICAL INVESTIGATION OF THE EFFECT OF
NAFTA ON THE ECONOMY IN CANADA. Global Journal of Accounting and Finance,
1(1), p.1.
Lans, C., 2016. Worldwide Opportunities on Organic Farms (WWOOF) as part of the
existing care economy in Canada. Geoforum, 75, pp.16-19.
Niblock, T. ed., 2015. State, Society and Economy in Saudi Arabia (RLE Saudi Arabia).
Routledge.
Mohaddes, K. and Pesaran, M.H., 2016. Country-specific oil supply shocks and the global
economy: A counterfactual analysis. Energy Economics, 59, pp.382-399.
Nurunnabi, M., 2017. Transformation from an oil-based economy to a knowledge-based
economy in Saudi Arabia: the direction of Saudi vision 2030. Journal of the Knowledge
Economy, 8(2), pp.536-564.
Presley, J.R. and Westaway, T., 2017. A guide to the Saudi Arabian economy. Springer.

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Southcott, C. and Walker, V., 2015. A portrait of the social economy in northern Canada.
Northern Communities Working Together: The Social Economy of Canada's North, 35(2),
pp.142-164.
Winseck, D., 2017. The Growth of the Network Media Economy in Canada, 1984-2016.
Reference list
https://www.worldbank.org/
https://www.sciencedirect.com/science/article/abs/pii/S0301420715000215
https://www.sciencedirect.com/science/article/pii/S0140988316302079
https://www.coles.com.au/
https://tradingeconomics.com/saudi-arabia/interest-rate