• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Business Economics

Extracts from this document...

Introduction

Reasons fuel prices is increased rapidly? * Because of the hurricane Katrina devastation which destroyed nine (9) oil refineries in the US Gulf Cost of Mexico which has resulted in less oil being refined. * Because of the high increase in air travel which has seen the number of passengers traveling in the last ten (10) years doubled. As a result of this passengers are being charged more as it cost airline operators more to fill up their planes due to the limited amount of oil supply available. * Because oil reserves are running out. * Because of China's rapidly expanding economy which has created a huge demand boost. * Because of greater need for crude oil suitable for processing into petrol for the fuel Sport Utility Vehicles. E.g. (SUVs) popular with US drivers. * Due to Global economic expansion which is driving what the International Energy Agency says is the "biggest increase in oil demand for 24 years". * Because as the world major oil consumers remain dependent on the Middle East for their oil, and due to recent violence in Iraq and Saudi Arabia, this has raised fears on interruption to supplies as Iraqi exports have been cut by sabotage attacks on their oil facilities. ...read more.

Middle

Thirdly with the government they are responsible as they charges high taxes on the price of petrol which make it extremely hard for consumers to cope when prices start going up. Lastly with ordinary people as we are now more dependent oil than ever before and to find out that our energy recourses are running out, we tend stock a significant amount that will last as for a long period of time. Which in this case mean petrol prices goes up due to panic buying. What is the effect on the following? * Owner of a transport company * Me as an individual * Local shops * Oil Companies * Car drivers * The police * The government The increases of oil prices effect people in a step by step process; this is as each person's effect causes difficulty for the other in order to operate. Firstly with the owner of a transport company the effect high oil prices have on the them will be, their ruing cost will double, and in order to order over come this they will have increase fears which will enable the to break even. ...read more.

Conclusion

they don't run out of petrol, this will result in more customers wanting petrol which will make up long queues and might result in disagreement between customers, but looking at it from a different point of prospective the garage will be making more profit as they will be getting more customers. The police are affected as a result of misunderstanding and protest against the increase in oil prices between customers, mean they are called to slot out the problems and restore order. This makes their job harder as more offices will be needed to work over time which the governments have to pick up the bills. The effect increase in oil prices have on the government is more of an economical crisis as they have to find a way to satisfy every one affected buy the high oil prices with out making any one uncomfortable. This will result in cutting back on spending and to be realistic no sector will accept having to cut back. Also with the government as they charge more taxes on the price of petrol they will see their tax intake in that period may be double. ?? ?? ?? ?? Business Economics ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Unit 12 - International Dimensions of Business Task 1

    On the other hand, being an airline whether it be an international airline or a small airline in 3-4 countries, the fact that you are an airline of some sort should be more than enough motivation to make sure that safety checks are carried out so nobody gets hurt.

  2. Understanding business ethics- BP and the Gulf of Mexico oil spill

    When measuring progress, they don't rely only on their own perspective. The annual Sustainability Report, charting the progress on environmental, health, safety and other measures, is independently verified by Ernst & Young. BP also regularly invites customers, shareholders, suppliers and others to tell them what they think and could change.

  1. PEST is a planning tool which is used by a business to evaluate and ...

    into consideration, and is making changes so that that they feel safe and happy working at Ginsters. This PEST factor could also be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of maximising profit this is because they will not have to

  2. NETFLIX CUSTOMERS SATISFACTION

    ?n individu?l is more likely to be s?tisfied if the service perform?nce meets or exceeds his/her expect?tions. On the other h?nd, he/she is more likely to be diss?tisfied if the service perform?nce f?lls below his/her expect?tions. ?ttribution theory is concerned with how individu?ls interpret events ?nd how this rel?tes to their thinking ?nd beh?vior.

  1. Business plan. The business that I am going to produce is a personalised logo ...

    and what service the business provides ( A personalised logo company specified in dance schools, in need of customised dance wear). If any issues occur within the businesses lifetime this can be used to look back on, to solve these problems.

  2. Financial Feasibility of Opening A Business

    This is one of the trickier objectives to fulfil. It involves generating financial help strategies such as a cash flow forecast in order to be able to be certain that the objective can be obtained. As I just mentioned, a cash flow forecast seems like my best bet as to whether I can decide if this business is financially operable.

  1. I am going to carry out an investigation into S Parton Construction Ltd. I ...

    As you can see from the table, there is a 4.6% increase of the population in GB who are economically active compared to the percentage of Wolverhampton. This shows that Wolverhampton is behind as a city compared to the rest of GB, which is reflected in the unemployment details.

  2. Internship project in travel agency "Excursus" of Lithuania. PEST and SWOT analysis.

    Law on Tourism is well defined tourism activities of the company and its requirements. If a change in the law firm would no longer claims to be a number of funds and effort to comply with the new. Laws governing relationships with consumers, indicate the quality of service for which the direct responsibility of the service provider.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work