Saudi Arabia is a country which specializes in oil production, and has historically exported at a significantly higher rate than it has imported goods. The country has vast oil reserves, and has become dependent on oil for its economic prosperity. Why has Saudi Arabia become such a specialized country, specifically in oil? What advantages does this country have as a result of its extreme specialization in one major good, and what problems may be present as a result of having >90% of its GDP come from this particular industry? Can you explain any of the trends in these graphs? What effect would those particular trends have on Saudi Arabia's economy?
Lukas Campbell and Ally Thai