1. Is $1 per gallon gas likely? Why or why not? What are your thoughts? There are certain factors lowering gasoline prices in the US. The main reason for gasoline prices decline is a global oil glut happening due to the recent start of oil export from US, stable oil production in Saudi Arabia despite declining prices and cancellation of Iran oil export embargo. All this consequently led to drop of oil prices globally. But nevertheless the $1 per gallon of gasoline seems unlikely now, because the other factors influencing its price like the cost of gasoline production and ...
Essays on Glut
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27th January2016
The article talks about Canada central bank’s move to keep its interest rate unchanged despite an economic slowdown. The Bank of Canada revised down its annualized growth rate from 2% last year to 1.4% in the first half of this year. The economic slowdown can be attributed to the current decline in oil prices. The central bank’s move to maintain the lending rate at 0.5% is a move seen to encourage more lending by the banks and, as a result, increase spending rates in the country. Oil is a product that has a significant impact on Canada's ...
“How To Make Sense of Plummeting Global Markets (Irwin)”
This article gives an in-depth look at the macroeconomics of the world. Factors that determine the performance of the global economy like stock and bonds have had poor returns to investors from the start of the year 2016. These poor performances are an indication of harsh times like global recession, which shall be witnessed later in the year. So far, the damage had been experienced on global assets like the dollar index, Chinese stocks, and crude oil. The assets’ market price have taken a decreasing trajectory hence the plummeting global markets (Irwin n.p). Narratives have a way of affecting ...
Recommending prolific changes in the monetary policy
This assignment is being submitted on July 13, 2015 The Chair U.S. Federal Reserves Washington D.C.
Dear Madam,
The international monetary fund has lowered the global economic growth rate by 0.2 points to 3.3% and causal for the same is chain link between stable and crisis struck economies. The prevailing economic scenario across the world is extensively affected by the vagaries of crisis struck nations, Greece and China (Zeng, 2015). Although both countries are resorting to possible stabilization, the resultant impact of their economic upheavals is imminent over US economy. As monetary policy adopted by the Federal Reserve ...
Based on globalization trends, technological advances, and economic policy, what are some of the key avenues for growth we might see in metal distribution in the next five years? Modernization led to increased metal production from 8 Million Tons in 2000 to 1606 Million Tons in 2013 (Research). Despite an increase in production and metal prices, the industry has been experiencing a glut for a period, majorly because of the poor performance of the American in economy. However, 2014 has been different, and the industry is logging positive results. There is unprecedented urbanization in many developing countries creating a demand ...
The number of college graduates have increased overtime, with an estimated 30% of adults holding degrees by the close of the year 2010 in the United States. It is estimated that upwards of 50% workers have level of education that do not match their respective levels of education, with the majority of these employees having relatively more education than is required. Overeducation results in considerable wage costs by individuals, coupled with productivity losses to the economy. These costs have increase in part due to the faster rise in higher education participation, which has not been matched, by corresponding increases ...
Although China has seen massive growth in the economy over the last decade and it is usually thought that economic growth and job creation go hand in hand, it is not always the case, and it is not the case in China. This is because economic growth is bettered with increasing labour productivity and as labour productivity rises (Wolf,) the rise in employment that comes with GDP growth is lowered, thus causing less employment in the economy. This has happened in China. While China has 1.3 billion people which means that they have a huge supple of low cost labour ...
Current Business Problems and Possible Solutions
Abstract The Sugar industry in Pakistan has been forced to face a number of problems in the recent years, especially for those people who are stake holders in them, most notably those of the raw material suppliers, the employees and the mill owners. Government intervention in the form of price flooring and the inability of some sugar mills such as Kohinoor Sugar mills limited in keeping up the technology pace with other larger, more technology suave sugar mills has resulted in numerous problems for the management. This paper explores some of the current problems being faced by Kohinoor Sugar ...
i. POLITICAL FACTORS: Political factors refer to those factors that occur in the government in which the firm is located. The government always takes part in the making of laws that govern the business enterprises in that particular country. These legislations can affect the firm both positively or negatively. The government can choose on those products that are harmful to its citizens and therefore deter the firms to trade in such products. The government has also enacted laws that protect consumers from being exploited by the firms. These factors are therefore vital to the operations of the firm. ...