Effects of Globalization in Saudi Arabia
Globalization can be termed as the development of global business activities, competition and markets and the increasing global interdependence of national economies. Globalization has increased considerably in past few years this is triggered by the advancement in technology, increasing innovation, rising real term incomes and trade liberalization across the nations.
Globalization has become one of the most contentious political as well as economic issues of the modern world today. With the increase in cultural convergence, there has been demand in similar products across the world. It basically aims to fulfill the needs and demand of the consumers by development of new products across the nation. Through globalization the product choices of the consumers has widened incredibly and the consumers are able to have purchase goods at comparatively low prices.
Globalization has helped in development of multinational and global organizations which helps in increasing the economies of countries. The advancement in technology have also increased the interdependence between countries of the world.
Globalization in Saudi Arabia:
Saudi Arabia has an oil based economy with strong government control, the country is still highly dependent on the production and export of oil. Saudi Arabia has seen many changes in past few years. Globalization in Saudi Arabia has resulted in mounting economic as well as political integration in different areas like trade, investment, monetary unions, currency affiliation and economic agreements, this has also helped in greater independence of nations and markets. With the globalization and internationalization, macroeconomic forces have led to greater interdependence of nations and markets, it has also improved the nature of production and distribution along with the modes of communication. Communication and information technology has focused on developing "Convergence Phenomenon" which has helped Saudi Arabia to establish close links to the economies of the world. In Saudi Arabia, Globalization can be views as a new hegemonic system, which helps in upholding the world's major capitalist economies, this is one of the reasons that the residents of Saudi Arabia consider Globalization as a menace to their society. The people of Saudi Arabia consider globalization as one of the biggest criticism in the cultural, economic and ecological terms. Globalization is also considered as the shift in the values, lifestyles and tolerance for diversity which has again set backed the Muslim culture. Globalization can be said to promote inequality within Islam and other cultural systems.
Globalization in Saudi Arabia has helped consumers in many ways, it has helped the consumers to have wider access of goods and services, it has helped in increasing the living standard of people across the world and have given them diverse lifestyles. Globalization has increased competition, driven down prices, increased the choices of goods and have increased international trade and travel. It has also increased information flow between nations.
Globalization has lead in opening new channels of communication as it has led to introduction of various means of communication which has affected the country in terms of society and foreign affairs. Globalization has also given opportunity to females in Saudi Arabia to explore new things. Globalization has also led spread of information as well as education in Saudi Arabia. Globalization has helped in brining much increased opportunity for the people of Saudi Arabia and has helped in development of people. People of Saudi Arabia are able to access broader market of goods and services with the advent of globalization.
One of the biggest curse that globalization has brought into picture is the increase in living standard of people of developed countries at an expense of developing countries. Globalization has brought no change to the people of developing countries who are below poverty line. The number of people below poverty line has increased considerably. There has been an increase in the unemployment rate of unskilled labour in the developed nations which is a result of globalization. The small businesses have also been affected with an increase in the globalization. Globalization also brings threat to national cultures and identities of developing as well as developed nations. The transnational companies also brings threat to the democracy as well as ecological environment as these companies strongly aims at profits.
Globalization has helped in bringing closer different societies across the globe, but it has also brought inequities, mass impoverishment and despair in the society, it has widened the gap between rich and poor nations and at times is considered as a threat to human rights. At places poverty has increased dramatically which has led inequality and people are trapped in poverty. People of Saudi Arabia find their interests neglected. At times globalization has also led in the violation of the human rights as per Universal Declaration of human rights. Local industries are being taken over by multinational companies and at times safety standards are being ignored so as to capture more and more market by manufacturing and selling cheap products.
Globalization has its pros and cons, it is not possible to prevent globalization, but the government should seek to ameliorate and eliminate the harmful consequences which have resulted from globalization. The government, international bodies and global businesses must seek a way to minimize its side advantages and focus on increasing the living standard for all.