...on pearl farms South sea bubble A surfeit of farmers and shortage of buyers tarnishes a once lustrous business Mar 11th 2010 | SINGAPORE | From The Economist print edition [pic] Hard times on pearl farms South sea bubble A surfeit of farmers and shortage of buyers tarnishes a once lustrous business Mar 11th 2010 | SINGAPORE | From The Economist print edition [pic] YOU can hear the relief in Rosario Autore’s voice when he talks about how his firm, Autore Pearls, one of the world’s largest pearl suppliers, survived the past 18 months. “Within the pearling industry we had a tough time,” he says. A slump in sales thanks to the global economic downturn and unexpected currency movements played a part. But the main problem underpinning the industry’s woes is a supply glut. Andy Muller, a dealer based in Japan, estimates that the worldwide production of cultured “South-Sea” pearls (from South-East Asia, Australia and the Pacific) increased from 2.4 tonnes in 1998 to 12.5 tonnes last year. The increase was due chiefly to the rapid expansion of pearl-farming in Indonesia, the Philippines, and, to a lesser extent, Myanmar. This has dimmed South-Sea pearls’ glow: the value of the harvest at the farm gate fell from $220m to $172m over the same period. “At present, the cake served to overfed and cash-strapped consumers is too large to be digested,” Mr Muller says. That leaves many pearl farms selling their wares below cost. In the Indonesian province of West...
Words: 393 - Pages: 2
...The gasoline protest in Mexico is taking place in a few different ways. People are protesting in the plants the make the gasoline by not letting any of the gas leave the plants to go to the rest of the state. Also, heated protest continues in Mexico and along the border due to the increase in gas prices where people are grouped together sharing their anger of the situation. The people are using their voices, sharing their anger with the news, and are holding up the Mexican flag. News 12 encouraged people from Arizona not to go to Mexico due to the gas shortage due to increased prices. For example, one man from Arizona was stranded in Mexico because his car ran out of gas and the gas stations were not refueling. Some people have been crossing...
Words: 333 - Pages: 2
...Everyone’s Gasoline Problem. Why does this happen? Gasoline prices have been on the minds of almost everyone lately. Many times people dread having to go to the pump or wait until it is absolutely necessary to full up their gas tanks. Some have even changed the type of vehicle they drive in an attempt to help save them money at the pump. It would seem that gas prices are either always increasing or decreasing on a weekly and even sometimes daily basis Gas prices are affected by numerous factors including the demand and supply for gasoline on the market, the prices of crude oil on the world market, seasonal changes and local market competition just to name a few. In recent years, the world's appetite for gasoline and diesel fuel grew so quickly that suppliers of these fuels had a difficult time keeping up with demand. The demand for gasoline has changed over the years as more and more people globally have access to vehicular transportation. Countries such as China and India, each with a population in excess of 1 billion, are experiencing an expanding middle class that will likely use more gasoline over time1. Although the demand for gasoline has dramatically increased, its supply sources are still the same and are depleting. The quality of the oil is not the same in all locations, hence the higher quality oil cost a lot more. These costs then trickle down to the consumer. Crude oil prices are significantly influenced by the Oil Producing and Exporting Countries...
Words: 398 - Pages: 2
...Principle #1: People Face Tradeoffs To get something you want, you have to give up something else you want. Scarce resources. Think of allocating your time or money. Societies face a tradeoff between more consumer goods (low taxes) and more public goods (defense, social programs). Since governments can borrow, there is a tradeoff between consumption for current and future generations. There is sometimes a tradeoff between the environment and jobs. equity: fair treatment efficiency: producing the biggest possible "pie". tradeoff between the two: will you sacrifice to become a doctor if your wealth is taxed? Principle #2: The cost of something is what you give up to get it. example: College education. The benefits are the job opportunities and personal satisfaction, but there are costs besides “out of pocket” costs like tuition and books. Make sure you count the 4 years' lost earnings. (Lebron James made a good choice.) Just count the room and board costs over and above what you would have paid if you didn't go to college. opportunity cost--what you give up in order to obtain the item in question. Principle #3: Rational people think at the margin. A marginal change is a small adjustment to an existing plan of action. [a deriv*****] example: Suppose you are an airline executive deciding whether to sell a standby ticket for $300. The 200 seat plane is nearly, but not quite, sold out, and the total costs for the flight are $100,000, or an average...
Words: 1091 - Pages: 5
...Authorities consider reducing highway speed from 70-mph to 60-mph could reduce gasoline consumption between 2% and 3%. Which would explain the price reduction at least by 10%. With today’s prices at 38 cent a gallon. However, a lower speed limit saves approximately 167,000 barrels of oil per day and would save approximately 6,400 lives a year.” (Dunn, William N. (2012), Para. 3. P. 24). Warrant 1: While reducing the speed limit can increase the fuel efficiency on the vehicles. Backing: Some cars are already made with fuel injection while driven between 30-mph and 60-mph. Mileage will drop noticeably if driven over 65 mph. Slowing down would reduce the amount of gasoline used as well as limitation grants. On a central standpoint these changes will cost less. Warrant 2: Reduced speed limit will also decrease the loss to of aid due to increasing gasoline prices. Backing 2: Reduce the number of victim will also reduce the governments cost of medical care. Objections: Shortening the speed will rise travel time as well as leading to traffic jams on major highways. Claim: “The U.S. should return to the 55-mph speed limit in order to conserve fuel and save lives. Claim: “The U.S. should return to the 55-mph speed limit in order to conserve fuel and save lives. Rebuttal: Many drivers have adjusted schedules and driving patterns in hopes to cut their gasoline costs. Saving gasoline will be possible if everyone slows down while driving. Information: Authorities consider reducing highway...
Words: 1690 - Pages: 7
...Business Economics GM545 Summer B, 2010 Exercise 1: Everyone’s Gasoline Problem “In recent years, the world's appetite for gasoline and diesel fuel grew so quickly that suppliers of these fuels had a difficult time keeping up with demand. This demand growth is a key reason why prices of both crude oil and gasoline reached record levels in mid-2008. By the fall of 2008, crude oil prices began to fall due to the weakening economy and collapse of global petroleum demand, which had pushed oil prices to record levels earlier in the year. These factors helped gasoline prices drop below $2 per gallon of regular gasoline in late 2008 and early 2009, the lowest prices in three years (U.S. Energy Information Administration, 2010).” According to the U.S. Energy Information Administration (EIA), the single biggest factor in the cost of gasoline is the cost of crude oil. So what affects the cost of crude oil? As with most costs, the answer is supply and demand factors. “On the demand side of the equation, world economic growth is the biggest factor. One of the major factors on the supply side is the Organization of the Petroleum Exporting Countries (OPEC), which can sometimes exert significant influence on prices by setting an upper production limit on its members, which produce about 40% of the world’s crude oil. OPEC countries have essentially all of the world’s spare oil production capacity, and possess about two-thirds of the world’s estimated crude oil reserves. Oil prices...
Words: 788 - Pages: 4
...Air pollution affects almost everyone living in the state of California and leads to diseases and infections of the respiratory and circulatory system, causing premature deaths. Ranking as the fiftieth state out of the fifty states of America, California suffers the most of this issue with millions of adults and children being diagnosed with various diseases. For example, asthma, a condition of the lungs causing difficulty in breathing, affects about 6.3 million children and 17.7 million adults in California and is mainly caused by the large particles in the air (United Health Foundation). The average size of fine particles in the air of America is 8.9 micrograms per cubic meter, while California’s average shows 11.4 micrograms per cubic meter....
Words: 523 - Pages: 3
...therefore I am skeptical of it at this time. 9. In the short run the market for gasoline has a factor other than price that changes and the increased income causes a shift in the demand curve to the right. This change...
Words: 1804 - Pages: 8
...1. Everyone’s Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Why does this happen? Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors outlined in our book. Be sure to cite any references used. * Gasoline prices rise and fall depending on supply and Demand. Gas prices are impacted by a number of factors, each individually placing its own pressure on our overall energy system. Some affect the price of crude oil and others affect the cost of producing and marketing gasoline, but combined, these factors greatly impact the fluctuation of gas prices that we experience on a daily basis. Changes in crude oil prices - Crude oil prices are determined by worldwide supply and demand, with significant influence by the Oil Producing and Exporting Countries (OPEC) as they determine how much oil to produce and sell to other countries. The more crude oil OPEC chooses to produce and release, the lower the price. Additionally, because oil is traded in a world market, events in remote areas affect the price of crude oil for almost everyone. In recent years, worldwide events that have impacted gas prices include: Decisions by the OPEC cartel to raise production quotas slowly and reluctantly after having reduced them in 2002. * An increase in worldwide demand for oil, including unexpected demand growth in China, India, and other quickly developing nations...
Words: 1280 - Pages: 6
...Executive Summary I have been requested to evaluate the ethical dilemma surrounding the product offering of Great Lakes Chemical Corporation. The company produces tetraethyl lead (TEL), which is an additive for gasoline. Surmounting studies from the past few decades have proven the extensive harmful effects leaded gasoline has on the environment, which has caused considerable vocal opposition from environmental organizations against the company. The dilemma arises in the fact that TEL is a huge financial success for Great Lakes; the company controls 90% of the market and the product accounts for 59% of their annual profit. Great Lakes should cease all operations involving the sale of TEL and focus on being a responsible corporate citizen. They will need to reinvest their resources on penetrating new markets, using their existing products as well as new products made possible by the special bromine production process of their subsidiary company Octel Associates. The distribution of TEL has given Great Lakes a very negative brand image. They have the chance to reverse that image by exiting an ethically unappealing market on their own terms. The company has a successful history of entering foreign markets and adapting to regulations overseas. This plan of action is feasible because Great Lakes is already so financially sound and is established as an international corporation with contacts across the globe. Situational Analysis Great Lakes Chemical Corporation, originally...
Words: 4668 - Pages: 19
...for most but the supply would be high because they only make a certain number of these cars per year and if you have the money you may want to sport this very fabulous vehicle. A non-price factor that causes possible change supply and demand would be safety. Safety is a big concern to me when I am going to purchase a new car. I am looking for a great safety rating because I need a car that will protect me and children in case of an accident. Safety should be key for everyone when they are thinking about purchasing a new car. I like to do my research before stepping into a dealership. I also have to consider would safety be better on an SUV or car. Research is key to getting a safe vehicle. I remember when Kia car came out the safety rating was horrible. The cars were made cheap and it definitely showed. From 1997 to 2001 the Kia vehicles had a lot of engine and transmission problems so there was no demand for those vehicles because no one wanted to invest in a vehicle that would bring them problems. Two substitutes for a car are to get a motorcycle or no car at all and depend on public transportation (bus and train pass), or sharing a ride with a friend or family. The thing about substitutes is that they are substitutes for what you want and so with that you have to decide if you can live with or without a new car. Having a family it is very hard to not to have a vehicle because...
Words: 770 - Pages: 4
...GAS IN 2020 Phillip Lang BUS 308 Nicholas Bergan 02/13/12 Part 1: Data Analysis The data that will be analyzed in this report is the consumer price index for fuel prices from the year 1982 to 2011. In this report we will be analyzing trend of gasoline prices and were they will take us in the future. Also this report will be help companies dealing with the oil industry and the expected price increases from a statistical perspective. Scatterplot: This chart shows us over time (x-axis) and the average price of fuel (y-axis) per year and explains the rate at which fuel prices are increasing. Without outside variables we can easily see the correlation of fuel prices now and what they will be in the future. The graph shows there is a positive correlation between price and time. The regression line and the positive slope explains that positive correlation. The slope: The slope as indicated by that diagram is .065, the value represents that the fuel price will increase over time, if the all assosiated variables are constant, by .065 units. So all of this information explains the increase in fuel prices as time elaspses. The y intercept: The y intercept from the results is -127.643. Regression model: y = 0.065x - 127.643 Estimating Fuel prices for 2020: When estimating fuel for 2020 within the model we are using we simply have x equal the year to come to the conclusion of where fuel prices will be. If the fuel price rises on average .065 units per year then...
Words: 1466 - Pages: 6
...Adding Alternative Fuel Vehicles to Lotus Rental Car In an effort to bring down the gasoline cost for his fleet, Lotus Car's Chief Financial Officer is looking at the possibility of adding alternative fuel vehicles to its fleet. To make a sound decision, she decided to hire a consultant firm that would review and determine if implementing the addition of alternative vehicles would benefit the company. By performing thorough research, the consultants will first perform a comparison between gas vehicles and alternative fuel vehicles. The consultant will then determine the advantages and disadvantages of adding alternative vehicles to Lotus Rental Car Company. Before the decision is made to add alternative-fuel vehicles to the Lotus fleet, we need to determine if AFVs truly are a feasible option. We must first acquire an understanding of alternative-fuel vehicles. As discovered in our research, there are currently a wide variety of alternative-fuel vehicles being used today. Alternative-fuel vehicles can operate on fuels other than gasoline or diesel. They come in a variety of forms, from commuter cars to large 18-wheelers. Using alternative fuels helps reduce our nation's dependence on imported oil and improves air quality. The Energy Policy Act of 1992 (EPAct) defines alternative fuels as electricity, ethanol, natural gas, propane, methanol, hydrogen, and biodiesel (U.S. Department of Energy, What is the Energy Policy Act of 1992, para. 2). Gas prices all over the world have...
Words: 2190 - Pages: 9
...Summer A 2009 Project 1 Email: michelebaker26@yahoo.com 1 Gasoline Prices Supply and demand have played a large part in the increase of gasoline prices the nation has experienced lately. The Law of Demand clearly indicates that the rise in demand for gasoline will lead to an increase in prices. This has been a topic that seems to continue coming up in conversations both in the classroom as well as everyday interaction as it seems to be affecting everyone. Some cannot afford to put gas in their SUVs anymore because the prices have been fluctuating and continuously increasing over the last couple of years. Even though I have read several research studies and articles on this before, I found a very interesting point that I had not previously heard of or thought about. I have often wondered what we as Americans can do to reduce demand of gasoline, since the increase in demand has obviously led to the rise in petroleum prices. However, this study shows that the problems may be stemming from the increase usage in both China and India to power their cars and factories. Unfortunately, there is nothing we can do to reduce the demand that other countries are creating. The article suggests that really the only thing that Americans can do is to decrease their personal demand for the fuel by getting rid of the gas guzzling SUVs or turning to alternative sources of transportation. Here in Arizona one of the skeptics of the gasoline price hike was Attorney General Terry Goddard. He personally...
Words: 1802 - Pages: 8
...technological, economic, environmental / geographic, and political / legal / governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors. The Analysis of the Social/demographic- The primary consumers of the products produced by Great Lakes—especially lead additives—comes from developing/third world countries. Although the case study does not specifically comment on the demographics of these countries or the social status of their people, it is presumed that it affected everyone especially in large populated areas, once the negative effects on lead were discovered. These dynamics, complemented by the fact that most cars in developing countries did not have catalytic converters clearly indicates that social/demographic factors did not adversely Great Lakes. And the numbers appear to bear this out: as of 1996, leaded gasoline comprised 93...
Words: 2253 - Pages: 10
