Saudi Arabia

By: Sam Day


Top 2 Exports:

Crude Petroleum Value: $227 billion 79.16%

Refined Petroleum Value: $15 billion 5.32%

Top 2 Imports:

Refined Petroleum Value: $9 billion 13.81%

Acyclic Alcohols Value: $ 7 billion 11.31%

Top 3 Exported to:

Japan $44 billion 15.42%

China $44 billion 15.34%

United States $42 billion 14.70%

Top 3 Imported From:

China $13 billion 19.61%

South Korea $4 billion 6.52%

Italy $3 billion 4.94%


Saudi Arabia and the United States trade, even though Saudi Arabia is the one making the profit of of it. This is because they have an abundance of a non renewable resource that the rest f the world is on a scavenger hunt for... oil. Because of this abundance, Saudi Arabia has to spend little of their money on it. they have absolute advantage because of sheer volume of their oil. "The U.S. goods trade deficit with Saudi Arabia was $33.7 billion in 2011, a 69.5% increase ($13.8 billion) increase over 2010. The U.S. goods deficit with Saudi Arabia accounted for 4.6% of the overall U.S. goods trade deficit in 2011."

This shows that it is a trade deficit for the US, but it"s a necessity to maintain our high standards and current way of life.

"Saudi Arabia plays an incredibly important role in the economy of the United State, largely because of its position as one of the most influential members of OPEC, the group, which is formed of the countries which are net exporters of oil. Saudi Arabia has huge oil reserves and it is currently the country with the best capacity for increasing or decreasing its oil production in response to changes in oil prices and demand."

40% of the Us's energy production relies on the oil we recieve from Saudi Arabia, and 97% of our vehicle fuel is due to them. Maintaining an open trade and good relationship is essential for the US's economy.

With Saudi Arabia being one of the major oil exporters, they can in a way set their own opportunity cost, having the ability to lower and higher prices due tot he demand. Since our country is choosing to buy goods at a cost not really beneficial to us, it shows that all choices have costs. It costs us money to trade, but we are getting what we need in return, and are paying the price. Saudi Arabia allocates it's resources where opportunity cost is available.

"Saudi Arabia, has 28 million people, about 8.6 million of whom are foreigners, who make up most of the labor force. Just 4.3 million of the almost 19 million Saudis were in the workforce in 2009, according to data from the Central Department of Statistics and Information." it makes sense as to why Saudi Arabia has foreigners making up a majority of their work force because that is where the money is. People from other countries will outsource their business because of their booming oil production. With high levels of this resource (25% of the worlds petroleum to be exact) , it makes a high demand for job openings. their economy is very centralized with most businesses being government run, but with swarming populations in the recent years "The government has begun to permit private sector and foreign investor participation in the power generation and telecom sectors." Saudi Arabia in a way is the Queen Bee of the oil economy. Everyone comes tot hem for crude oil, making them popular and wanted. In Vegas, Saudi Arabia is the card dealer, and every other country is a player in this risky gambling game. Saudi Arabia holds all the cards (oil) and has the power to "deal it out" as they wish.