4.0 Implementation 4.1 Broader perspective Globalization is affected by various factors that drive towards its existence and formation in the society and a set of these macroeconomic factors. As per this analysis we can get an overview of the current economy of the country that helps the researcher to make relevant suggestions and recommendations that can benefit the economy as well as society to make them believe and trust that the globalization enhances their behaviour and life style. PEST Analysis: Source: Visual.ly website PEST Analysis of Saudi Arabia Political environment Giddens and Griffiths (2006, p. 59) states that mainly there are three reasons why politics has become one of the main drivers of globalization. …show more content…
There is stability in politics and it is undergoing slow political reforms. For the first time in 2005, the local ruling body was held and more such reforms are being expected in the near future. Even though the king has tried to bring some reforms, namely the initiation of a legislative council and local elections, the country 's traditional practices and religious norms aren’t being compromised in the process. The conservative judicial system has no separation of powers and the final decision maker is the authorized judge by the king. Although there is a drive in their economy for foreign investors for sectors such as power, aviation, and telecom etc. there exists a preferential bias for Saudi nationals in matters of employment and business. There has been a tremendous growth in GDP due to rise in revenues from oil as a quarter of the world 's oil reserves are in Saudi Arabia. There is a demand for taking measures and effective implementation towards environment regulations. The identification of major weaknesses and the government’s measures for them is helping towards the transformation of Saudi Arabia into a developed nation with a diversification of …show more content…
Economy is one of the evident drivers of globalization, hence it is meant to propagate the free market capitalism concept to the world where the entire world is viewed as a single market where services, commodities and labour can be traded. Organisations such as WTO, IMF, and WB have been given additional authority which they have initiated to reform trade rules. Social Environment The Kingdom of Saudi Arabia is observed as the leader of the Muslim world, as it is the home town of Mecca. The government is committed to supporting the economic growth and to be part of the developed nations, which is very challenging to achieve since fundamentalist Muslims turn down the idea of globalization which could be seen as a political risk on the jurisdiction. While on the other hand, this political situation has affected the restaurant business positively because the restaurant industry has not been affected and still remains as a form of a social gathering among people. Technological