Comparison of GDP of Saudi Arabia and the United States
The economy of the Kingdom of Saudi Arabia is oil-based economy with a strong control of its government over the major economic activities. Saudi Arabia owns 18% of the petroleum reserves of the entire world, and has been frequently ranked as the leading exporter of petroleum. Also, it has played a significant and leading role in OPEC for many years. The United States of America, on the other hand, has technologically the most dominant economy in the world. The firms of the United States are at the pole position in technological advancements, particularly, in the field of pharmaceuticals, computers, aerospace, and military equipment. This paper covers a comparative study between the economy of the Kingdom of Saudi Arabia and the United States on the basis of their Gross Domestic Product. The Economy of the
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05 billion, whereas, the total GDP of the United States is $15. 68 trillion, which is ranked 22 times greater than the GDP of Saudi Arabia. However, in the per capita exports sector, Saudi Arabia has been ranked as 22th with a figure of $ 13, 720.27, which is 3 times greater than the rank of the United States. United States ranked 50th with a figure of $ 4,972 (CIA, 2016).
The composition of GDP by Industry is 66. 9% in Saudi Arabia, which is four times greater than the United States as the GDP by industry in the United States is just 19. 1%. The per capita Gross Domestic Product in Saudi Arabia is $22, 939. 18, whereas, in the United States, it is $ 45, 759.46 per capita. Thus, the per capita GDP in the United States is twice as much as the per capita GDP of Saudi Arabia. The GDP by purchasing power parity is $ 883. 70 in the Saudi Arabia, whereas, it is $ 16. 24 in the United States, which is 18 times greater than the GDP by purchasing power parity of the Saudi Arabia (CIA,
Ultimately, however, it is Canadian exporters of all sizes and in all industries that make this relationship as successful as it is. In 2003, Canada exported approximately C$365 billion worth of goods and services to the U.S., while it imported nearly C$280 billion from its southern neighbour. In fact, U.S. exporters sold more goods to Canada in 2003 than they did to the European Union.
The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic situation in the United States.
Although the United Sates and Saudi Arabia present the United States and Saudi Arabia’s relationship as excellent, there are actually two nations who have bitter disagreements but who allies through oil. The only thing that has held this alliance together is the US dependence on Saudi oil. The United States has felt and still fells that it is a necessity to have bases present in the Middle East to protect oil, and silently to protect Israel. The relationship began in 1933 when Standard Oil of California signed an agreement with the Saudi government. In 1943 FDR affirmed that the defense of Saudi Arabia was a vital interest to the United States and moved troops into the region. Future presidents would emulate this declaration and mobilization of troops to Saudi Arabia. Again in 1945 Abd al Aziz, the Saudi king, and FDR would cement this alliance, on a US warship in the Suez Canal. Soon after, airfields were constructed at Dhahran and other spots over Saudi Arabia; beginning a long tradition of US military facilities in Saudi Arabia. Abd al Aziz was the first of his line of successors to meet with US presidents. The relationship was only strengthened with the onset on the Cold war, as the US used the bases in Saudi Arabia as potential air force launch sites to the USSR and constructed more military facilities. In 1941 Harry S. Truman made another assertion of Americas protection and alliance with Saudi Arabia to Abd Al Aziz. Truman stated that “support for Saudi Arabia’s territorial integrity and political independence was a primary objective of the United States.” (Countrystudies.com) Another stipulation of this pact was that the US established a permanent military training mission in the Saudi Arabia. That mission lasted until 1992. Soon after the pact between Truman and Aziz was agreed upon the US-Saudi relationship would endure its first major disagreement. On May 14th, 1948 Israel was declared an independent state in the former Arab dominated Palestine. Israel’s independence was backed the United States. Saudi Arabia refused to acknowledge the country of Israel and to engage in any relations with them. The Saudis concerns of the Israel-US relationship were reinforced in the 1970’s and 1980’s when the US sold arms to Israel, but refused to sell arms to Saudi Arabia. In some cases congressional leaders refused to sell arms to Saudi Arabia on the grounds that Saudi Arabia might use them against Israel.
The U.S. industries have been outsourcing manufacturing for several decades now. U.S. companies thought they were reducing costs by outsourcing development, manufacturing, and process-engineering abilities. Consequently, U.S. corporations’ knowledge, skilled workers, and supply chain, which are the necessities to producing advanced products, have vanished. For example, almost all notebook computers, cell phones, and handheld devices, which were once created in the U.S., are now designed in Asia. When a major U.S. company outsource, it pressures their rivals to do the same thing. They also lose the expertise of process engineering, which would interact with manufacturing on a daily basis. Minor companies and skilled workers go to where the jobs and knowledge networks are no matter where they are geographically in the world. This decline of trade in the U.S. has caused a negative chain reaction to their suppliers of sophisticated materials, tools, production equipment, and components. U.S. industries do not have a way of coming up with new ideas for the next generation of high-tech products...
First, population plays a large role in every country’s economy. USA’s population is almost 280 million people, whereas, UK’s population is a little less than sixty million people. However, due to the difference in land area of the two countries - UK: 244,820 square kilometers; USA: 9,629,091 square kilometers - the United Kingdom is much more crowded than the United States. Even with these differences the two countries have similar age breakdowns and life expectancies of both males and females. The GDP per capita in the United States is $12,100 more than that of the United Kingdom.
They increase the spending on connectivity and human resources (Saudi Arabia Emergence Innovation Kingdom, 2014). Saudi Arabia is the largest economy in the Middle East and the richest Arab country. The economy of Saudi Arabia is entirely based on oil (Smetoolkit.org, 2014). Saudi Arabia is the 19th largest exporter and the 20th largest import market in the world (Saudiembassy.net, 2014). Exports now in the kingdom include all economic sectors.
When comparing two countries, there is bound to be multiple differences between them. No two countries are exactly alike and the aforementioned statement is true when comparing the Dominican Republic and the United States. They differ in location and geography but also have many other differences. Some of the main differences occur in the topics of culture, customs and way of life.
Magee, S. P. (1977). Multinational corporations, the industry technology cycle and development. Journal of World Trade, 11(4), 297-321.
Saudi Arabia and China are quite different countries. The latter is much larger than the former. The former is the largest country of the Arabian Peninsula and it is located in Middle East, bordering the Arabian Gulf and the Red Sea, north of Yemen. The latter is the largest country in Eastern Asia, bordering the East China Sea, between North Korea and Vietnam. Although there some similarities between Saudi Arabia and China, there are also several differences in the areas of population, economy and the culture.
A way to measure a country’s economy is to look at its gross domestic products. This tells the total value of the goods and services that a country produces. In Jamaica, the economy has always been the main problem for the people. It is based primarily on agriculture, tourism, and bauxite mining. The country is very dependent upon tourism, its main source of foreign exchange. Bauxite mining is the principal source of revenue for the country. Most people do not have the opportunity to go to school and also there are not enough jobs for everybody. On the contrary, the United States is wealthiest in terms of economy. They have abundant natural resources, a well-developed infrastructure, and high productivity. Moreover, people have more chances of going to school, and there are more job opportunities for those who graduate as
Raw GDP figures give a very poor and non-comparable indication of a countries’ SoL if they do not take into account the size of a nation’s population. Real GDP per capita (Real GDP/population) is a much better measure when comparing countries as it takes into account both inflation, as well as the population of a country.
I chose to compare the United Arab Emirates to Panama because both countries are experiencing significant economic growth even though many countries are experiencing problems with the economy. Both countries are located in close proximity to important regional waterways. The United Arab Emirates has the Straits of Hormuz, while Panama has the Panama Canal. The Strait of Hormuz is a waterway between the Gulf of Oman and the Persian Gulf. It is bordered by Iran, United Arab Emirates, and Oman Musandam Peninsula. About 20% of all the world’s petroleum passes through the Strait of Hormuz. At its narrowest, it is 21 nautical miles wide. The Strait is used to import and export items into the countries that border the strait, including the United Arab Emirates. The Panama Canal is a 48 mile Canal that connects the Atlantic Ocean and the Pacific Ocean. The Canal is located on the Isthmus of Panama making it a perfect place for the Canal. The Canal is used to decrease the amount of transportation time for ships traveling throughout the area. There are locks at each end that lift ships up to the Gatun Lake, a lake made for the canal. It is 85 feet above sea level. It takes a ship an average of 8-10 hours to travel through the Panama Canal. Both countries generate billions of dollars through the waterways, although the United Arab Emirates generates more money than Panama.
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
The first and the most obvious difference between Saudi Arabia and Netherlands is the law for prostitution. In Saudi Arabia, prostitution is strictly illegal which relates to the Islamic law that prohibits any sexual relationship outside the institution of marriage. The penalty of prostitution for those who refuse to recant, if a prostitute is a foreigner, they will be arrested, imprisoned, deported from the country and will never be allowed in the Kingdom again. Furthermore, in the case that a prostitute is a resident, they will be stoned to death or beheaded under Islamic law (Hood, 2002). According to Arab News, a Saudi Arabia man was sentenced to 28 years in jail after convicting of sexual assaulting an Indonesian housekeeper (2007). Nevertheless, by intensively enforcing prostitution laws, the Saudi Arabia government has not quite completely solved the problem yet. As to the report by Middle East Times, two years ago there were more than 80 people who were involved in 20 cases of prostitution arrested by the police (The law in Saudi Arabia, 2007). Unlike Saudi Arabia, prostitution has been legalized in Netherlands ...
The Gross Domestic Product (GDP) is the total market value of in a country’s output. The GDP is the total market value of all final goods and services produced by factors in within given period of time that located in the country doesn’t matter they are citizens or foreign-owned companies. Hence, the GDP is the best way to measure the country economy.