Cause and Effect of Oil Prices on the U.S. and World Economy

Oil prices are continuously fluctuating resulting in various effects in the U.S and world at large. This may be due to the fact that oil is a very critical commodity with regard to the operations of any country hence; a slight change in the macro or micro environments of the oil producing countries alters the oil prices.Advertising We will write a custom essay sample on Cause and Effect of Oil Prices on the U.S. and World Economy specifically for you for only $16.05 $11/page Learn More There are various direct and indirect factors that affect oil prices. Oil prices have substantial effect on the economy of the U. S. as well as that of the entire world. This paper seeks to talk about the causes and effects of oil prices on the U.S and the world economy. Various geo-political factors and natural calamities like the North Korean missile tests, hurricane Katrina and the conflict between Israel and Lebanon in 2006 are deemed to have an indirect link to the gl obal oil market, but have great short-term effects on oil prices (Tuttle Ola, 2010). However, the onset of global recession in 2008 seemed to indicate that the aforementioned factors have insignificant effects on oil prices because the recession was associated with a fall in oil price from $147 to $32. Fall in oil prices has a positive effect on the economy of the U. S. as well as that of the entire world since business activities are not limited (Tuttle Ola, 2010). Supply disruption is also conceived to be an attributing factor to oil prices with the incidence of 1973 as evidence. The oil supply growth has been slow despite the fact that oil production has surpassed new discoveries. Similarly, the demand is too high to be met by the slow supply for oil hence, acting as an attributing factor for oil prices as well. High demand and low supply leads to an increase in oil price. The United States is the leading consumer of oil and high oil prices usually have a very great impact on t he country’s economy (Roubini Setser, 2004). The impact of oil prices varies depending on the fluctuation of the continuously changing oil prices. When fluctuation in oil price is increased, then the effect on the U. S. and global economy is negatively affected. The U. S., as well as the global economy improves with every decline in oil price. The effects of oil price shocks are great and have been the reason for every U.S. and global recession experienced in the past. Oil price shocks tend to suppress the economic growth of the U.S and related oil importing countries. An adamant escalation in oil price by 10% leads to a reduction in the US and global economic growth rates by 0.3-0.4% in one year. High oil prices lead to reduced consumer spending hence a reduction on economic growth. An increase in oil prices results in increased production costs and a reduction in profits for industries that highly rely on oil in the United States (Roubini Setser, 2004).Advertising Lo oking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The international Energy Agency (IEA) supports the highly held conventional wisdom that oil price increase leads to lowered GDP and increased inflation and high rates of unemployment causing a general dwindle in OECD’s economies. Facts show that barrel increase by 10 $ results in a reduction of OECD’s GDP by 0.4%, which is below baseline, as was the case in 2004 and 2005 respectively. In addition, the inflation rate is raised by 0.5 and 0.6% respectively, above the standard or acceptable rates (McKibbin Stoeckel, 2004). It is without doubt that oil prices have a great impact on the U.S and global economy. Oil prices are continuously changing due to various factors as mentioned above. An increase in oil prices is however associated with lowered economic growth, high rates of inflation and unemployment while acceptable/reduced oil prices ensure eco nomic growth, increased business activities as well as increased consumer spending. Regulation of oil prices is very important because it is apparent that high oil prices negatively affect the U.S and global economy. References McKibbin, W., Stoeckel, A. (2004). Oil Price Scenarios and the Global Economy. Economic Scenarios. Web. Roubini, N., Setser, B. (2004). The Effects of the Recent Oil Price Shock on the U. S. and Global Economy. Web. Tuttle, R., Ola, G. (2010). Oil Ministers See Demand, Prices Rising Undeterred by Greek Debt Crisis. Bloomberg. Web. This essay on Cause and Effect of Oil Prices on the U.S. and World Economy was written and submitted by user Bo Cortez to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Feminism in Latin America Essays

Feminism in Latin America Essays Feminism in Latin America Essay Feminism in Latin America Essay Though seemed unfair, these are the standard to measure and govern the system of honor in the society with emphasis on womens reproductive side and authentication of paternity. This double standard was further used to prescribe what is right and wrong on the womens side which if broken might inflict terrible consequences which bring about family disgrace, communal contempt and even banishment from the society. If the women are from the elite or ruling class, their loss of honor as a result of loss of virginity or out-of-wedlock pregnancy have to be redeemed either by eventual marriage or by the concealment of sexual activity and pregnancy so that such activities never became public knowledge and therefore never threatened honor. During the colonial period, women were not only socially discriminated in their status and roles but they also underwent a more tangible means of intimidation. In one of the Spanish America colony of New Granada, women often suffered from verbal and physical abuse, even death in the hand of their spouse. Uribe-uran (2001:43) in his article Colonial Baracunatanas and Their Nasty Men: Spousal Homicides and the Law in Late Colonial New Granada wrote that such physical assault towards women was considered natural among the lower classes and state officials centuries ago. In some part of the world this practice was even considered as the husbands right as a punishment for the wifes misbehavior. : However, their movement still acknowledges the role of women as responsible for bearing the children and caring for the home as opposed to their more radical North American counterpart. References Nye, Robert A. Masculinity and Male Codes of Honor in Modern France. (New York: Oxford University Press, 1993), 13 Johnson, Lyman L. and Sonya Lipsett-Rivera. The Faces of Honor: Sex, Shame, and Violence in Colonial Latin America. (Albuquerque: University of New Mexico Press. , 1998), 4

Ethics of Care and Justice Essay Example | Topics and Well Written Essays - 1000 words

Ethics of Care and Justice - Essay Example Finally, Held perceives people as being â€Å"relational and interdependent, morally and epistemologically† just like the morals of responsibility (Held 148). This is mainly because the theory put forward mainly perceives humans as being individualistic. On the contrary, the morals of justice differ from the morals of care since it emphasizes on the issues of fairness and human rights unlike the latter which emphasizes on the individuals emotions (Walls, p.176). It does not emphasize on handling the individual emotions but on promoting fairness despite the emotions attached to the issue under consideration (Robinson 135). The morals of justice additionally differ from the morals of care since they consider reasons rather than an individual’s emotions and are keen on ensuring that justice prevails in all situations (Walls 178). The morals of justice also differ from the morals of ethics on the ground that the former focuses on the importance of mobilizing the social reso urces available in safeguarding the vulnerable people from exploitation from the people who are in power (Robinson 139). This is different from the morals of care which emphasize on the importance of shaping good and caring relations among individuals (Walls 179). Finally, the morals of justice stipulate that humans are dependent and are solely responsible for their actions but the morals of care stipulate that humans are relational and interdependent (Robinson 142). This implies that according to the morals of care humans rely on one another for moral support and that the relations between them play a vital role in their daily lives (Walls 183). The moral of justice approach differs from the morals of care approach since it can be used in... This essay basically expounds on Held’s views on the principles of care as the primary moral principle, valuing emotions in favor of reason and valuation of partiality rather than impartiality while focusing on private relationships as opposed to relationships in the public realm. The researcher of this essay also tries to ascertain whether people are relational and self-governing rather than being independent along with autonomous. According Virginia Held, the rights of humans begin with ethical responses to oppressions that have been experienced historically. She says that in â€Å"order for them to become operational they must be developed into institutional mechanisms that function effectively to mobilize social resources to protect the vulnerable†. Virginia Held also argues that the morals of care have a lot to talk about concerning moral relationships within the private spheres of the family along with their personal friends. Finally, Held perceives people as bein g â€Å"relational and interdependent, morally and epistemologically† just like the morals of responsibility. In conclusion, the father and mother should be made to account for their mistakes through the standards of care and justice that Virginia Held suggested. This is because they will greatly help in alleviating the emotional breakdowns that the children go through due to their behaviors. The approach I would prefer to be utilized in streamlining their activities is the moral of care as it considers the personal relationship between the individuals in question.