This combined with the current fuel climate and oil prices result in a lot of demand for bio-fuels which is why 20% of American grown corn goes on bio-fuels. Like a rise in income this also shifts the demand curve to the right and results in demand pull inflation. This can be illustrated by the same diagram and the same shift from P1 to P2. In conclusion the prices of grains such as corn and wheat have risen as a result of multiple demand side factors. In 2007 was when the rise in disposable incomes in China and the rise in demand for bio-fuels saw significant rises which in combination caused a large price rise as a result of demand pull inflation.
In the first half of the year earnings for the Resources division have increased, due to higher export coal prices. * Operating in many different geographical areas * Being dependent on customers and supplier chains in each local and overseas areas, as well as different geographical areas of operations. This increases inherent risk due to difficulty to control operation in different locations as well as the climate changes in regards to their products. II. Unusual pressure on management The management is under unusual pressure to perform well and increase returns for shareholders in order to gain more remuneration: * Objective to provide a satisfactory return to shareholders, this would increase inherent risk due to pressure placed on management in order to meet budgets or forecasts * Remuneration plans * Also the directors have significant remuneration plans – they are awarded a lot of
The diagram above shows that real GDP has increased from Y1 to Y2 which means that economic growth has increased. As a result, unemployment falls as we are getting closer to the inelastic part of the AS curve, which is much needed as “unemployment has shot up” in this economic crisis. However, inflation has risen from P1 to P2 which means that our exports become less competitive so our trade deficit gets worse. However, the rise in inflation is needed as inflation is falling below the 2% target. The changes in the government’s macroeconomic objectives depends on where we are on the AS curve as shown below.
He explains that as the global need for oil grows it puts more money in the pockets of the oil producing countries. He has a great “law” in this chapter that says that as oil prices increases the amount of freedom decreases. I found this very interesting just because the measure of freedom can be very subjective and it depends on what a person’s view of freedom is. He also tries to say that the increase of money in these countries fuels more terrorism. Which is another subjective idea because any country becomes richer would almost everything increase?
(d) Oil companies anticipate an upsurge in demand for oil in electricity generation. (e) The demand for petrol rises. (f) New technology decreases the costs of oil refining. (a) Shift right. (b) Movement up along (as a result of a rise in price).
(Champagne & Harpham, 21) Texas seems to be urbanizing more and more. This shift brings about economic growth and diversification which means new roads will have to be built, more construction, and expanded water and sewer systems (window.tx.state.us, Susan Combs, Texas in Focus: A Statewide View of Opportunities) thus creating many more jobs as well. A state that was once majority Anglo’s has become a state of all races, which has also driven the growth in population. Texas is now a state where different ethnicities have a larger number that the Anglo’s. People are coming from all over to work in the oil field particularly.
With growing competition among private companies, there was a significant growth in the number of factories in China. This also led to toxic-coal-waste, which is the “largest source of industrial waste” in China (Doc. 7). Because of China’s increasing energy demand due to a rising production in cars and air conditioners, it “is turning into the world’s biggest energy consumer” (Doc. 6).
Boom Economic Environment | The influence of this economic environment on business activities within a selected organisation | During boom the demand for the products gets high very rapidly. There is high level of demand because people have more money to spend as more people are in employment. During boom consumer demand for more so the business and suppliers cannot satisfy the needs and this leads to increase in price which called Inflation. As the price rise, people are willing to pay higher prices because they have more money to spend. During boom business gets confidence because more people are demanding for their products and this rise in production.
One effect of hydraulic fracturing on economics is that it creates a huge increase in profit for natural gas sellers and drillers by opening up the opportunity to tap so much more natural gas than was available before. “North America has approximately 4.2 quadrillion (4,244 trillion) cubic feet of recoverable natural gas that would supply 175 years’ worth of natural gas at current consumption rates.” (Earthworks, N. Loris) Another way it affects the economy is that 10,000 jobs could be created by each drilling site that is opened. (N. Loris) However, a negative effect it has is that it costs about 2 billion dollars for each plant and extra for maintenance and disposal. One last affect hydrofracking has on the economy is it lowers natural gas prices by up to 15 dollars a gallon.
This fact is due to the increasing population of the aged in the American economy. The rise in the number of the aged population has led to a spontaneous rise in the demand for the Medicare program. The rise in demand of Medicare has triggered a subsequent rise in the cost of health care in the USA. According to statistics disclosed by Bozic (2011), the consumers of Medicare will rise up to 76 million by the end of 2030. Going by the contemporary crisis in the Medicare program of America, Bozic (2011) dictates that the solution to the crisis will demand increase in the tax margin on the employees.