Managerial Economics

Managerial Economics

1. What are the top 10 exporting industrial activities?

The following are the top exporting industrial activities in Saudi Arabia 2011 – 2014.

* Manufacture Of chemicals and Chemical Production

* Manufacture of food prod. And beverages

* Manufacture of basic metal

* Manufacture Of rubber and plastic products

* Manufacture Of paper and paper products

* Manufacture Of Fabric Metal production excluding Machine

* Manufacture Of electrical machine And apparatus

* Manufacture Of other non-metallic min. prod.

* Manufacture Of furniture, manufacturing N.E.C

* Agriculture and related activities

2. What can you say about each of the top 10 activities as a percent of industrial exports? (E.g., are they sustainable? are they depleting our natural resources?)

Exports play an integral part in calculating the gross domestic product (GDP). GDP is the measurement of the national income of a country. The national income indicates the economic activity. This includes exports which results in income flowing. Saudi Arabia is one of the largest oil suppliers. The highest level of the exports is the Manufacture of the chemicals and chemical production. This industry consists of utilization of crude oil and other petroleum products. In the span of four years, there has been considerable increase in the exports level of manufacturing of chemicals and chemical production. In 2010, the export level of the aforementioned industry was 79,240 while in 2014 it increased to 140,169 increasing more than 2 times. It has increased by 77%. This showing that indeed there are chances of depleting the most valuable natural resource of Saudi Arabia – oil.

The other industries that export the products comprise of food and beverage production, basic metal, plastic products, paper products, furniture and non-metallic productions. All of these industries only comprise less than 1% of the total exports of...