Abstract:
Oil prices had plunged in the year 2014, and impacted the world.
Starting from different kinds of sectors from agriculture to businesses, and
unquestionably countries both consumers, and producers.
The aim of this thesis is to discuss and analyze the response of Saudi
Arabia in facing the plunge of oil prices that started in the year 2014, and
its' impacts towards the Kingdom. This research has found that it took two
year to finally affect the Kingdom enough to finally to finally be aware of
the changes that needs to be made by the Kingdom.
In the first part, the oil price decrease will be discussed, and the
causes that contributed to the on-going fall of prices. In the second part,
Saudi Arabia's response will be discussed and elaborated. The nation
responded the decrease of prices with a goal of economic reform "Vision
2030" by Crown Prince bin Salman. The response will be analyzed and
related using the theories of: Shock Therapy, Rational Expectations, and
Structural Adjustment Programs.
In conclusion, this thesis hopes to offer readers the knowledge of
how a fall of oil prices had impacted one of the world's oil powers. The
purpose of this research paper is to learn about crude oil and its significant
effects, and share a deeper understanding of how a high-living country
adapts to a crash on their only commodity for economic growth, and the
reasons behind their response, and decision-making.
