Trading with Saudi Arabia
The United States is the largest trading partner Saudi Arabia currently has. The primary reason for this is politics. In 1940, the U.S. established diplomatic relations with Saudi Arabia. America is also one of the countries most dependent on Saudi oil exports.
Saudi Arabia is a member of the GCC, Gulf Cooperation Council which is a political and economical union between Saudi Arabia and UAE, Bahrain, Oman, Qatar, and Kuwait. In 2003 the GCC eliminated internal tariffs which enabled the free movement of labor and capital between the nations. It also created a unified 5% external tariff on most imported products. This assisted with the employment of the country as well as the production of goods sold and traded within those countries. The GCC has also signed a free trade agreement with Singapore and the European Free Trade Association.
The pattern of trade for Saudi Arabia seems to be consistent with its comparative advantages/ disadvatages in production. Oil and petroleum products are Saudi Arabia's major export (and it's largest revenue), if you refer to the pictures above, you will notice that the needs like food and textiles and machinery/equipment are being met by trading its abundant export of oil with the same countries, United States, South Korea, China, Japan. Saudi Arabia is utilizing comparative advantages in production by producing, in this example, one export and trading it with another country in exchange for something else.
As part of the Arab League, Saudi Arabia has imposed sanctions on Syria. The imposed sanctions include "freezing of Syrian government assets in Arab countries, stopping dealings with the Syrian central bank, the suspension of commercial flights to and from Syria, halting investment by Arab governments for projects in Syria, and a travel ban on senior officials". This is being done in an attempt to stop the Syrian government from using violence against demonstrators.
Saudi Arabia is a member of the GCC, Gulf Cooperation Council which is a political and economical union between Saudi Arabia and UAE, Bahrain, Oman, Qatar, and Kuwait. In 2003 the GCC eliminated internal tariffs which enabled the free movement of labor and capital between the nations. It also created a unified 5% external tariff on most imported products. This assisted with the employment of the country as well as the production of goods sold and traded within those countries. The GCC has also signed a free trade agreement with Singapore and the European Free Trade Association.
The pattern of trade for Saudi Arabia seems to be consistent with its comparative advantages/ disadvatages in production. Oil and petroleum products are Saudi Arabia's major export (and it's largest revenue), if you refer to the pictures above, you will notice that the needs like food and textiles and machinery/equipment are being met by trading its abundant export of oil with the same countries, United States, South Korea, China, Japan. Saudi Arabia is utilizing comparative advantages in production by producing, in this example, one export and trading it with another country in exchange for something else.
As part of the Arab League, Saudi Arabia has imposed sanctions on Syria. The imposed sanctions include "freezing of Syrian government assets in Arab countries, stopping dealings with the Syrian central bank, the suspension of commercial flights to and from Syria, halting investment by Arab governments for projects in Syria, and a travel ban on senior officials". This is being done in an attempt to stop the Syrian government from using violence against demonstrators.