...What Causes High Gas Prices? There are various factors that play a role in the price consumers pay at the pump. The major cause in the fluctuation of gas prices is crude oil. Crude oil is that main ingredient involved in the manufacturing of gas. One body that has great influence over the worldwide price of oil is the Organization of Petroleum Exporting Countries (OPEC). OPEC is made up of twelve of the world’s biggest oil-producing nations which include: Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. Since OPEC’s nations produce so much of the world’s oil supply, they can control the level of production. Oil is one of the world's most important commodities, and as a result, the nations that control the majority of the world's supply have a great deal of power over its availability. In addition, conflicts such as war in an oil-producing region can also bring up the price of gasoline. Andre Gerolymatis, a history professor at Simon Fraser University, says political upheaval in Ukraine and Russia's military incursion into Crimea could be putting pressure on prices. The reason, of course, is that 40 per cent of Europe's gas and oil comes from Russia, and it comes through the Ukraine. So there's the potential that this could be disrupted, and that means that the Europeans would have to go elsewhere for gas, and that would drive the prices up. (Bains, 2014) Bibliography Bains, M. (2014, March 5). Russia-Ukraine...
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...Texas Economy: Not Just Relying on Oil Anymore Candace D. Willson Professor: Alan Leonard Economics 100: Principles of Economics May 29, 2015 Texas Economy: Not Just Relying on Oil Anymore Oil prices have been declining recently due to an increase in supply. The effect has the potential cause a recession in Texas. As one of the largest contributors of national oil in the U.S., the price drop could impact the state’s economy (Economist, 2015). The article published in The Economist (2015) explains the oil history and current plight in Texas. Texas has a strong economy with some booming new industries; their banking sector has also changed their ways, but it might not be enough to keep the state out of economic trouble. Four Observations The first key point of the article is to explain the economy in the state of Texas. “From 2009 to 2014, one in five jobs created in America was in Texas” (Economist, 2015). The state was considered to have one of the largest economies in the world and produces a high percentage of the country’s oil. The recent price drop in oil could be devastating to one of the strongest economies in the country. Secondly, the article deals with the potential for new industries to “take up the slack” created by the falling oil prices (Economist, 2015). Austin, the capital of Texas, has successfully created a tech start-up boom. There are many younger, educated individuals trying to make a life in the area. In fact, the percentage on young people is...
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...JULY 2013 SESSION CHAPTER 15 QUESTION 14. Everyone’s Gas Problem When we discuss fluctuating gas prices, we have multiple reasons why this may occur. To begin, the price of gas could rise and fall due to breaks in the distribution. An example of the breaks in distribution could be a hurricane in areas of supply or an up rise or political upheaval in an area like Libya. Second, we can look at how close you are to a particular area of the US that would be near oil production or proximity. Third would be competition. How many stations are supplying gas in a certain area or region? As we get closer to a city like Chicago, prices may increase because of higher taxes. “According to the EIA, every time you pay for a gallon of gas, you are not only paying for the price of crude oil (61% of cost), but also federal and state taxes (15%), refining costs and profits (15%) and distribution and marketing (10%).” This is a classic case of supply and demand in economics which relates to the chapters we have discussed. Upon reading about gas and crude oil, I have learned that there are different types of oil. Light/ sweet oil is in high demand because it takes less time to refine into gas which in turn results in faster production. The price of light oil is higher because the supply is low. Heavier/ sour crude oil takes less production and is more readily available in turn the price is low. “Chicago, like most big cities, is required by the federal Environmental Protection Agency to...
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...mind the different arguments. Even if Egypt is not well integrated into the international financial system and Cairo is not a significant financial hub, the Egyptian Revolution can have major economic and financial implications. Although the country is not a major oil producer, the main way Egypt can impact the global economy is through oil. It is interesting to see that oil markets overreacted to the Egyptian uprising. Oil prices have risen around $100 U.S. per barrel. First with the Suez Canal which runs through Egypt, the country plays a key role for transporting oil from the Persian Gulf to Europe and elsewhere. The Egyptian crisis could create some disruptions in the operation of the canal and that might cause a rise in oil prices. That could have negative effects for oil-importing countries and bring inflationary pressures. After the 2008 crisis, the world has been weakened. Today, it is recovering health but it is not strong enough to endure a new shock. So Egypt is essential for the geopolitical stability in the Middle East. According to the journalist, economic and financial factors are not responsible of the main impacts. Indeed, we have to keep in mind that only a minority of the entire world’s supply of oil passes through the Suez Canal. The traffic seems normal....
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...inflation during late 70s? One of the factors that contributed to inflation during the late 70s was a second oil shock. 1979 was supposed to be a moderate year on world oil markets, but the situation changed rapidly and spiraled out of control with Organization of the Petroleum Exporting Countries (OPEC) preannounce price increases to 14.5% over the year. In 1979, the Shah fell in the Iranian Revolution and the western influence over Mid-East oil shrank even further. Two weeks after the fall of the Shah, the anti-western Ayatollah Khomeini came to power and took control over Iran and soon brought havoc to the energy markets that were reminiscent of the initial energy crisis of 1973-1974. As a result, the second oil shock hit the western countries in 1979. During the second oil shock, there was no shortage in the supply of oil but production fell from six million bbl./day in 1978 to next to nothing during the months of revolutionary upheaval. The impact on oil prices was devastating, causing oil price spike in price from $12.70/bbl. to $18.70/bbl. by midyear. After recovering slightly from the 1978 low, it was followed by the depreciation of the dollar; thus, this caused the inflation of the late 70s. According to Exhibit 14, the effective exchange rate index fell to the lowest of 92 points during 1978-1980. The weakness in the U.S. dollar continued to push U.S. consumer prices to increase thus causing inflation because of the heavy demand for imports in the U.S. Moreover, the weak...
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... In economics, hyperinflation occurs when a country experiences very high and usually accelerating rates of monetary and price inflation, causing the population to minimize their holdings of money. Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value. Meanwhile, the real value of economic items generally stays the same with respect to one another, and remains relatively stable in terms of foreign currencies. This includes the economic items that generally constitute the government's expenses. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless. Hyperinflation is often associated with wars, their aftermath, socio-political upheavals, or other crises that make it difficult for the government to tax the population, as a sudden and sharp decrease in tax revenue coupled with a strong effort to maintain the status quo can be a direct trigger of hyperinflation. When associated with depressions, hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked this causes prices to increase, as the currency loses its value. When associated with wars, hyperinflation often occurs when there is a loss of confidence in...
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...Question 1: * Brexit meaning ? Cách 1: Brexit stands for an act of leaving by Britain from the European Union (short for "British exit") Cách 2: Brexit means the withdrawal of the United Kingdom from the European Union, short for “British exit” * British should stay in The EU Union. Here are some main reasons: 1. Jobs Around 3.5 million British jobs are directly linked to British membership of the European Union’s single market – 1 in 10 British jobs. 2. Exports & investment The EU buys over 50 percent of UK exports (54 per cent of goods, 40 per cent of services). Over 300,000 British companies and 74 per cent of British exporters operate in other EU markets. American and Asian EU firms build factories in Britain because it is in the single market. 3. Trade The EU negotiates trade agreements with the rest of the world. Outside the EU Britain would have to renegotiate trade deals alone. While the EU is the world’s largest market, a UK outside the EU would not be a high priority for other counties to negotiate a trade deal. 4. Freedom to work and study abroad – and easy travel 1.4 million British people live abroad in the EU. More than 14,500 UK students took part in the European Union’s Erasmus student exchange scheme in 2012-13. Driving licences issued in the UK are valid throughout the EU. 5. Fighting crime The European Arrest Warrant replaced long extradition procedures and enables the UK to extradite criminals wanted in other EU countries, and bring...
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...the history of international humanitarianism, using Bosnia, Kosovo, or Rwanda as examples, the United Nations determined that action is necessary and the United Nations along with the North Atlantic Treaty Organization (NATO) have a responsibility to the world to do whatever it takes to minimize the bloodshed. The United Nations called for a no-fly zone to help protect the people of Libya from its own government and that protecting them from Gaddafi is in the best interest of the world. As part of the United Nations and NATO the United States is not obligated to support the international leadership organization but the leaders expect our support. In identifying the cause of this problem, one must not forget about the impact oil plays in the...
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...SHARJAH HIGHER COLLEGES OF TECHNOLOGY PROJECT COVER SHEET- (ASSESSMENT 2) [20%] Course Name | ECON N400 | Faculty Name | Angelo Olo | Project Title | Outlook of the UAE Economy | Due Date | Nov. 4, 2012 | Section | | Date Submitted | 3-11-2012 | Student Name | --- | Student ID | --- | This assessment will assess the following Learning outcomes: This assessment will assess the following learning outcomes: * LO 2: Analyze patterns of economic activity in the UAE from an oil-based economy to development of the non-oil sector. * LO 3: Evaluate the role of the non-oil sectors on the UAE economy. Declaration; Individual: * No part of this assignment has been copied from another source, (not from another group or student, an internet source or a book). * When another person’s words are used, this is shown in the text with “…” and referenced. * No part of this assignment has been written for me by any other person. * I have a copy of this assignment that I can produce if the first copy is lost or damaged.Name ………………………………………………… Signature …………………………………………….Declaration; Group: * No part of this assignment has been copied from another source, (not from another group or student, an internet source or a book). * When another person’s words are used, this is shown in the text with “…” and referenced. * No part of this assignment has been written by anyone other than the members of the group named below. * We have a copy of this assignment that...
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...communities. Given political stability there is no reason why India should not be able to carry out her future plans without generating serious inflationary pressure on the price level.” The percentage of inflation in regard to price movements and the purchasing power of the rupee need to be evaluated on the basis of wholesale price index (WPI) with 1950-51 as the base year. Unfortunately, the government with the intention of preventing a factual comparison of the purchasing power of rupee, keeps changing the base year every decade, from 1950-51 to 1960-61, later to 1970-71 and finally to 1980-81. Deficit financing in every five year plan and improper planning led to a 40 percent rise in food grains, 45 percent in cereals and over 70 percent rise in pulses during 1961-1966. The country was in the grip of a galloping inflation. This with 1950-51 as the base year. Keeping 1960-61 as the base year, the Fourth five year plan save the price index at an all time high of 331 in September 1974 (with 1961-62-100). This was due to a combination of several factors, the primary being the influx of refugees in large numbers from Bangaldesh and the expenses incurred by the government on them, failure of Kharif crops in 1972-73 and complete failure to take over the wholesale wheat trade. The declaration of Emergency in June 1975 resulted the arrest of price rise and a steep fall in inflation and prices of commodities. Unfortunately, political upheavals, callous bureaucracy and an equally callous...
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...Carlson Gerelus Professor Patel In to Sociology Film Analysis Media Influence We’ve likely to grown up thinking that the main stream media was our friend, the middle man that is always there when we need it. Faithfully provides us with information that is of common sense and natural judge for everything that matters. They’ve told what to eat, what to drink, how to eat, how to drink, what wear to, and what the standards of beauty should be and look like. The content that’s important, and a reliable guide to existence. As we’ve gotten older we have come to realize that this isn’t quite true as we would want it to be. For that we have to go in depth with what is wrong with the main stream media. From time to time, the greatest messages have been propagandized through the usage of movies and drama over the asphyxiation of motive and emotional sequences, disregarding any logical or factual sequences, thus having media outlets pushing emotional content to its viewers, distorting fantasy from reality. This content is necessary in the eyes of the distributor that is trying to get its consumers to do something or believe in the same ideology as the distributor would want them to believe in. Rather than go through a discussion or debate using logic and facts. Let’s take Fox News for example, a right wing news outlet that specializes in taking tender topics to the extremes to get its viewers hooked on its coverage for consumption, allowing one side of an argument to be seen but...
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...is settled now. Out of that 26 million people in Saudi Arabia, is has been found that the annual per capita income is anywhere from $11,500 to 24,500. This sounds kind of ridiculous because the country is known to the world to be oil rich. At first glance, one would view economic statistical indicators and convey the fact Saudi Arabia is a developed nation. However, close analysis of political and social statistical indicators would suggest that their standard of living and individual freedoms are severely suppressed. Believe it or not, this 'developed' nation has abnormalities in its statistical indicators which are similar to those that characterize third world nations. As a person who was born into this culture and is originally of Saudi Arabian descent, I find these statistics hard to believe. During my time there I never witnessed despair or poverty. These indicators and information is why I chose to research this topic and see for myself what this once wealthy nation is in fact doing now. Economic Success Saudi Arabia was a poor country until oil was discovered beneath the eastern deserts in the late 1930's. The country suddenly found itself very wealthy as it became an important exporter of oil in just a few years. The price of the oil increased very dramatically from just $3 a barrel to over $40 a barrel. This economic success ensured that the leaders became very wealthy. The GNP per...
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...consideration, we have selected to review General Motors operations in China and Ford operations in India. We will examine risk factors that should be taken into consideration before entering the global market, such as political and economic risks. There is considerable concern regarding the economic stability in India, as the country’s stock market, the Sensex, fell by twenty-five percent last year, which put the country in last place among all major world economies. Additionally, the country’s currency, the rupee, fell sixteen percent, which was the worst in all of Asia. These decreases are in large part due to worries regarding the country’s current account deficit as oil imports trump the country’s level of exports. With the rupee falling, inflation has been high in India. However, inflation in food prices fell drastically in December, raising hopes that general inflation rates will follow in the long run (Daniel, 2012). Although India is the third largest economy in Asia, growth has fallen to its lowest rate in two years, 6.9 percent, by the middle of last year. (Daniel, 2012). However, though this information looks grim, India is not in any immediate danger of defaulting on payments, as the country has $300 billion in foreign reserves, in addition to a new “$15 billion currency swap line with Japan [that] was unveiled in December” (Daniel, 2012, para. 6). In addition to economic risks, political risks to foreign entities wishing to do business in India must be taken...
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...unemployment is unemployment that occurs because it takes workers some time to move from one job to another. It is frictional because the labor market does not automatically match up all available jobs with all available workers. Instead, job search requires time for the right worker to find the right job. Both workers and society benefit when job applicants are matched to the appropriate job. Sources of frictional unemployment include the following: people entering the workforce from school; imperfect information (information about the availability of jobs); people re-entering the workforce after raising children; people changing unemployers due to quitting or being fired (for reasons beyond structural ones); people changing careers due to changing interests; people moving to a new city (for non-structural reasons) and being unemployed when they arrive. Economic science considers frictional unemployment is normal and is not cause for alarm. Moreover, frictional...
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...History Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service. Atlas Honda in Pakistan: Atlas has undertaken to develop local manufacturing capabilities to the highest, economically feasible level. While a major role in localization has been assigned to vendor industries, Atlas has the country’s largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CDA & CAM, which are growing rapidly in size and function as the company expands. Atlas has managed to execute 14 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Export ...
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