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FDI Confidence Index Report (Assessment)

When an organization wishes to invest in a foreign market, it is advisable to analyze different countries and identify the one that has the greatest potential in investments.

By ignoring this task an investor would lose greatly because things may be different, and it is therefore important to carry out thorough investigations by engaging the people on the ground. This is because they are the most knowledgeable, which is advantageous to the investor.

The need to employ FDI confidence index comes in because different countries have different cultures and by analyzing those cultures an investor can tell which countries provide favorable environment for investment.

China is at the top of the FDI index and this is probably due to its high population that provides adequate source of labor. Atkearney argues that this is a very crucial factor because without sufficient labor, a foreign investor would have to import labor from his country which is very expensive.

In addition, the foreign employees would take a lot of time before they get used to their new location and this would have a negative impact on their performance. Since the population of china is high it is most likely that the rate of unemployment is very high and thus, employees will not demand for six figure salaries.

Certainly, the US and India have the highest literacy levels. This is because a population that is comprised of learned individuals is ideal source of labor. In fact in India there are so many people who are learned, but they do not have jobs and they would be more than willing to get somewhere so that they can provide for themselves. These are just a few factors that causes a country to be rated at the top of the FDI index.

The stability of a nation is what attracts high foreign direct investment and this stability is reflected by a country’s economy. Unstable economy means that the currency of the host country has a very low value, and this would have a negative impact on the profits.

Get your 100% original paper on any topic done in as little as 3 hours Learn More This is because no one wants to invest in a country that has a collapsed economy. Foreign investors observe the stock market and other sectors for some time before making the decision to move into a given country.

FDI is derived by rating the countries involved according to their infrastructure and availability of labor; the latter has been discussed in the previous paragraphs. Infrastructure is quite vital in attracting FDI because it enhances the movement of goods and services from the manufacturer to the consumer.

Countries with poor infrastructure do not attract much FDI even if they have adequate supply of labor because poor transport systems make investors to spend a lot of money in transporting raw materials and the finished products, and the chances of making profits are narrow.

Advanced infrastructure causes the price of commodities to come down because the investor spends less money on transport. Furthermore, the employees that would be hired would spend more time while commuting, which affects their working hours and productivity.

FDI is also affected by political stability because a country that is experiencing civil unrest is not appropriate for FDI. This is because business does not take place as usual because at such times everyone focuses on saving his/her life.

Similarly, a country that has political stability attracts the most FDI because investors feel safe to inject their hard earned money into a country where they are sure politics will not affect their venture.

Work Cited Atkearney, Inc. Foreign Direct investment (FDI) Confidence Index. 2011. Web.

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The Level of Internet Adoption in Saudi Arabia Research Paper

Nursing Assignment Help Table of Contents Introduction

Introducing the Sites Already Available in Saudi Arabia

Overall evaluation of existing problems.

E-government websites and online banking infrastructures

Exploring Online Services Offered in Other Countries

Gaps to be fulfilled in the sphere of online services

Summary of Reviewed Literature

Reference List

Annotated Bibliography

Introduction The Internet has introduced a wide range of opportunities for organizations, businesses, and citizens in terms of communication, cooperation, and social interaction. Being one of the greatest contributions, it has also presented new options and services that can substitute physical infrastructures with online presence of the above-mentioned systems.

Certainly, such innovation has considerably improved social and cultural interaction, yet some countries are in extreme need of these introductions that significantly them from successfully communicating at the international level.

Public and private organizations, government, and citizens in Saudi Arabia also realize the core benefits of using the virtual space for overcoming the problems with delivering services, selling products, and competing with other, more progressive international companies (Al-Ghaith, Sanzogni, and Sandhu, 2010).

Unfortunately, the problem is that not all online services available for the Arab users are worth relying on, which creates the problems of confidentiality, security, and credibility of information delivered online (Aladwani, 2003, p. 18).

Specifically, the Saudi websites are commonly created by the governmental organs and ministries, banking systems, and educational establishments that can offer high-quality online services.

Other economic segments, such as e-customer services, attorney services, healthcare services, renewing passports services are not developed enough in Saudi Arabia.

Therefore, it is necessary to analyze the identified gaps through the analysis of existing services in Saudi Arabia and those in other countries to evaluate the level of Internet adoption and define the area that should be more advanced in that matter.

Get your 100% original paper on any topic done in as little as 3 hours Learn More Introducing the Sites Already Available in Saudi Arabia The adoption of electronic services in Saudi Arabia is largely carried out by governmental and banking infrastructures as presented by Saudi Arabian Monetary Agency (2011), Saudi Government (Online Services, 2011), Portal of Ministry of Health (Electronic Services, 2011), Ministry of Higher Education (2011), etc.

All these websites are secured enough to provide valid information. As per the other sectors, insufficient attention is paid to the problems of insurance, confidentiality, and accessibility for commercial activities performed online.

It should also be stressed that the contemporary community can offer a wide array of online services among which are those that are not available in Saudi Arabia. Specifically, the increasing rates of globalization process have had a potent impact on the commercial system in the country.

According to Oxford Business Group (n. d.), a 2008 period was marked by significant rise of customers using phone handsets to purchase product and services. Increasing potential is observed within Business-to-Consumers (B2C) e-commerce environment that creates greater opportunities for global integration and for penetrating to the international market (Oxford Business Group, n. d.).

Overall evaluation of existing problems. The studies presented by Al-Ghaith, Sanzogni, and Sandhu (2010) shed light on existing problems in the sphere of online services whose accessibility is not of the highest level.

Particularly, the researchers identify the major problems of Internet adoption. One of such problem consists in presence of a considerable gap between the increasing number of internet users and development of security systems for online databases. Similar challenges are considered by Aladwani (2003) who believes that the purchasing power of the Arab world currently depends on the quality and availability of online services.

However, specific political, cultural, and religious ideology negatively contributes to improving the situation. More importantly, the research suggests that improper analysis of language, traditions, history, and values established in the Arab countries makes it impossible to define the main what improvement should be made to reach greater accessibility and security.

We will write a custom Research Paper on The Level of Internet Adoption in Saudi Arabia specifically for you! Get your first paper with 15% OFF Learn More Another problem is that Saudi Arabia does not have enough resources for creating a well-secured online system ensuring great potential and options of Internet users. In this respect, both Aladwani (2003) and Al-Ghaith, Sanzogni, and Sandhu (2010) are more concerned with shortcomings of online system which is more oriented on governmental and political needs.

E-government websites and online banking infrastructures In the studies provided by Abanumy, Al-Badi, and Mayhew, P. (2005), the problem of e-government accessibility is evaluated in terms of guidelines provided, tools applied, and underpinnings of human factors introduced.

While evaluating these key areas, the researchers try to outline the problems connected with the integration of Information and Communication Technology aimed at improving the agencies service and enhancing the internal development of the organization. The introduction of more advanced communication technologies will contribute greatly to transforming e-government websites and making them more citizen-oriented.

Impetuous diffusion of the Internet has dramatically changed the distribution channels utilized by the financial systems. Many banking infrastructures are currently referring to online technologies much more frequently in order to provide customers with wider opportunities to participate in retail banking operations (Aladwani, 2003; Al-Somali, Gholami, and Clegg, 2009).

According to Al-Somali, Gholami, and Clegg (2009) “round-the-clock availability and ease of transactions and avoidance of queues and restrictive branch operating hours” are the basic reasons for preferring online presence to the physical ones while carrying specific banking procedures (p. 1).

Importantly, the studies also prove the idea that social influences and reluctance to change significantly prevent the banking website from normal functioning. With regard to this, extreme necessity for the introduction of online services to all spheres of life is predetermined by the rigid competition on the e-market arena.

According to the Oxford Business Group (n. d.), online “[a]ccession has led to the creation of new laws for all sectors from banking and insurance to telecoms and distributions, enabling the creation of a plethora of new companies” (p. 39). Interpreting this, the country will be able to stand a competition only when effective online services are introduced.

Exploring Online Services Offered in Other Countries Though Saudi Arabia gradually enters online infrastructure, the Internet adoption considerably lags behind other developed countries, such as the United States, Australia, and European countries. The explicit gaps exist in the sphere of passport renewal, e-commerce, legal considerations, and healthcare system.

Not sure if you can write a paper on The Level of Internet Adoption in Saudi Arabia by yourself? We can help you for only $16.05 $11/page Learn More The broadband in Saudi Arabia is not developed enough to introduce renewing passport and driving license services, which is heavily practiced in the United States (Travel.State.Gov, n. d; Australian Government, n. d.). Hence, the service enables the users to renew their passports via e-mail by fulfilling a number of simple procedures.

This introduction would greatly contribute to the online communication systems developed in Saudi Arabia and provide more opportunities for the Arab women who can freely participate in certain procedures without male’s consent.

With regard to the above, Gibbs, Kraemer and Dedrick (2003) present a comparative analysis of political environment impacting the formation of global e-marketing to reveal that Business-to-Business commerce is usually caused by external, or global forces whereas Business-to-Customers marketing is more determined by local influences.

Despite global orientation, international companies still pay closer attention to the individual demands and local diversity issues to work out more effective strategies of online marketing (Oxford Business Group, n. p.).

Therefore, the primary focus should be made on considering consumer values and preferences, national culture and peculiarities and distribution system that differ considerably across countries and these differences identify the global perspectives of development.

In addition, Gibbs, Kraemer and Dedrick (2003) insist on the idea that telecommunication optimization seems to have the most tangible impact on e-marketing by providing more affordable Internet access both to consumers and firms. As a result, the necessity for introducing consistent system of e-commerce legislation is indispensible to favorable development of online services in Saudi Arabia.

In general, a cross-country examination of the e-commerce websites as well as quality and security of information delivered online provides a clearer picture of existing gaps in Saudi online services systems in terms of options and demands. Specific emphasis should be placed on considering customer’s needs and preferences, cultural peculiarities, and security and reliability of online network in Saudi Arabia.

Gaps to be fulfilled in the sphere of online services Due to the fact that the Internet usage is dramatically increasing in Saudi Arabia, many government ministries and leading companies have an Internet presence and, therefore, new e-commerce strategies should be adapted to meet social and cultural challenges, specifically those caused by Western influences.

First of all, direct cost, extensive investments, and introduction of active business models will be the best contribution to advancement of online services quality in Saudi Arabia (Aichholzer G., Schmutzer R., 2000, p. 380).

In addition, e-marketing strategies should also be oriented on creating effective advertising campaigns that would attract more consumers who are the core indicators of marketing success. Without consumers’ demand, e-commerce will be nothing, but a bulk of hardware and software platforms.

Second, online website should involve more people to participate in online forums and discussions where each question asked by a consumer should be immediately answered by online operators.

With regard to this, human resource management should be adopted to provide a sufficient support to customers and create a more reliable ground for seller-buyer interaction within the virtual space. Third, the above-presented review of sources provides more reasons for integrating more effective e-commerce law as established in countries having more experience in online marketing.

Summary of Reviewed Literature In literature review section, such aspects as analysis of existing online services, assessment of e-government and online banking infrastructures in Saudi Arabia have been examined to relate them to the global trends of Internet adoption.

A cross-country analysis contributes to presenting the most sophisticate problems and challenges that Saudi Arabia online services currently face. While assessing the current options, the review has also provided a number of gaps to be fulfilled in online systems in terms of accessibility, quality and credibility of information delivered, and options offered.

The results of literature review and surveys have shown that significant emphasis should be put on creating e-commerce infrastructures regulated by e-commerce legislature, websites offering the attorney services, and sites providing other specific services, such as passport renewing and drive licensing.

Saudi government should be aware of the benefits offered by the virtual space and in order to introduce technological advancement in the identified spheres, it is imperative to re-consider political, social, and cultural issues that have a potent impact on the formation of a more globalized online services system.

Reference List Abanumy, A., Al-Badi, A., and Mayhew, P. (2005). E-Government Website Accessibility: In-Depth Evaluation of Saudi Arabia and Oman. The Electronic Journal of e-Government. 3(3), pp. 96-106.

Aichholzer G., Schmutzer R., (2000). Organizational Challenges to the Development of Electronic Government, IEEE Press, pp. 379-383.

Aladwani, A. M. (2003). Key Internet Characteristics and e-commerce issues in Arab Countries. Information Technology