While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.
economics
Description
Critical
Thinking: Saudi Arabian Riyal and the U.S. Dollar (110 Points)
While Saudi Arabia seeks to diversify its
economy, the Saudi economy is dominated by the petroleum sector. In addition,
the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.
In a critical essay,
1-
discuss the advantages and
disadvantages of the pegged exchange rate.
2-
Indicate the main
considerations Saudi Arabia faces from a currency perspective (e.g., currency
values, interest rates, inflation, and trade issues) that ensue given two
scenarios:
A.
The first scenario is a
dramatically declining world oil price.
B.
The second scenario is a
dramatically increasing world oil price.
Directions:
Your essay is required to be four to five
pages in length, which does not include the title page and reference pages,
which are never a part of the content minimum requirements.
Support your submission with course
material concepts, principles, and theories from the following textbook
(Carbaugh, R. J. (2019). International economics (17th ed). and at least three
scholarly, peer-reviewed journal articles.
Follow APA style guidelines. + (use sub
titles for each section).
It is strongly encouraged that you submit
all assignments into Turnitin prior to submitting them to your instructor for
grading.
