How Oil and Gas Could Affect the Economy Research Paper

How Oil and Gas Could Affect the Economy - Research Paper Example This paper tells that the use of oil and gas may continue to change and affect the economy, dependent on how it is used within various regions of the world.   If this resource continues to fluctuate, it can lead to either a recession in the economy or growth and expansion of various regions. The use of oil and gas is no longer one that is based in different regions of the world. It has now become a dependent resource from every region, with most resources coming from regions such as the Middle East and being outsourced into different places of the globe. Each of the areas that produce oil and gas first has to find the natural resource through an oilfield that can continue to produce the right demands for various regions of the world. The current demand has led to most oilfields producing an average of 260 billion barrels a year, some which produce as much as 25 billion barrels a day. As the gas and oil continue to be produced, it leads to instant fluctuations with pricing. The equa tion that is used is based on the amount of oil and gas that are available for different regions of the world, specifically with estimates of how much oil and gas can be recovered from the selling prices of the oil and gas. For example, if not as much oil and gas can be produced from an oilfield, then the prices will begin to rise in the economy and will alter how much one spends on the amount of gas or oil for their needs. The main effect that the oil production has on the world economy is based on a rise and decline of pricing and production. As the rise of oil demands continue, there is the inability to continue with the amount of production that takes place through the oil that is available. The geological constraints and technological problems are making it so that there are limitations in the amount of production. The result is that political influences and other factors begin to affect the economy by raising prices and creating different ways to find oil.

Case studyfinish 2 questions as i send you Essay

Case studyfinish 2 questions as i send you - Essay Example tals that outrun the ability of local firms to compete on the same trading scale with them, and as such, have to seek other ways of protecting themselves from the competition posed by such international corporations. The Coca Cola Company, for instance, is one of the major multinational corporations operating in China as the leading market player in beverage drinks. In fact, the company holds nearly 16% of the total market share control of beverages in the Chinese market, which is a huge threat to the local players in the industry. The company is currently planning to spend $ 4 billion between 2015 and 2017 in the Chinese market in order to cut off the stiff competition it is getting from the here as the world’s most popular beverage drink market. This is just a sign of how much competition the local firms face from established multinational corporations. As such, apart from these firms coming into the domestic market with huge outlays of capital, they also come in with a reputable brand image recognized over a global scale, which makes it difficult for domestic firms to fight their competitive wave. Jianlibao is one of the leading domestic brands in beverage production in China. The brand had humongous success within its home market during the 1990s that spurred the sports drink maker to pursue its dream of expanding into international markets abroad. This move was totally out of line with the company’s local prospects of protecting and safeguarding its domestic playing field from international market players. For instance, its expansion to dozens of overseas markets created room for the entry of new international players like Coca Cola, which came in with a bang, and aspired to take over the local market. As such, Coca Cola produced a local brand that blended appropriately with the Chinese market, the Kekou Kele, which is among the most effective strategies employed by international firms to adapt to local Chinese markets, as well as, connect with local