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

    Looking for tomorrow's energy is as much a part of their business as supplying people and businesses with the fuel, products and power they need today and for the future. How it affected Tourism Tourism's not a small player in the region.

  2. NETFLIX CUSTOMERS SATISFACTION

    m?rket exch?nge. Consumers form perceptions of their inputs (se?rch, decision, m?king money, etc.) ?nd outputs into ? p?rticul?r exch?nge. Equity Theory m?int?ins th?t people seek ? b?l?nce between there efforts ?nd rew?rds ?nd the rew?rds th?t others receive for their efforts.

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

    out of refrigeration and not exceed this rate, this means that if they are travelling long distances to distribute their good they will have to make sure that have refrigeration for their good. Otherwise it could lead to great problems for Ginsters as they will have lose customers as people

  2. Unit 12 - International Dimensions of Business Task 1

    - the UK, they will be competing for the most market in a specific continent and on a world scale market which is likely to increase efficiency and work productivity of workers.

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

    Collect information: where are we now? 3.Make plans: how do we meet the objectives ? 4.Monitor progress: how successful are we? Why I need a business plan- A business plan is needed as it provides specific information about your company, it structures the businesses life cycle and shows all of your business associates (bankers, lenders, parteners).

  2. Investigating Business Resources

    This makes employees more motivated and better able to deal with future situations. Staff at Tarmac is encouraged to link professional with personal activities. This is done for example by arranging football sessions once a week or taking part in charity activities.

  1. Business Studies Company Recruiting

    Job description Robert Seares Robert Seares is a senior partner in Cluttons, he is also the Head of the Oxford offices and also the Commercial offices in Oxford. He reports to the Head of commercial services in Cluttons. The Oxford Commercial Team reports to him and his main responsibilities are

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

    Ltd., Tourism, Financial accounting, tax laws governing business start-ups, their internal operations and the liquidation of the company relationships with customers, partners and competitors, contractual and legal responsibility. Tourism companies have to constantly keep track of the various legislative changes and adjust their activities to sustain the material or moral loss.

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