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Bus 305 Case One

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TRIDENT UNIVERSITY INTERNATIONAL
BUS 305
MODULE ONE
FALL 2012
CASE
ANDREA F JOHNS
DR. BABB
18 JUNE 2012

Well if the demand for oil is strong from country and another country has massive supply of oil, that country such as Iraq can affect oil prices. Basically, if any country has a shortage of oil supply, they can expect that they will have to pay higher prices for oil due to the demand. Also, the world current events can affect the price of oil, because the supply decreases due to politics, wars, and natural events such as tsunamis. Supply and Demand can also be affected by alternative fuel that automobile industries are working on hybrid automobiles that can run on plant and electricity, because of the need to independent from the usage of oil. However, it is hard for dependent countries such as the U.S. to break free from the high demand of oil because there is so much of it, and technology hasn’t advance fast enough, and it is sold at a cheap price from other countries. In addition, oil prices can remain high for those countries that are in a recession or the economy just tanked. If the currency of any country is strong, that country demand and pay the price of any country that supply it, once again affecting the price of oil. Meaning, if Japan right now give the U.S. oil to keep

2 up with the current demands of consumers, we would almost pay double in price, because our currency is very weak against the Yen ($1.00/Y72).

China and the U.S. would be the biggest consumers of petroleum products. With all the oil refineries in the U.S. the usage of petroleum has become a way life. Even, China with its billion people population has made petroleum a way life. I can see U.S. losing this spot, because of automobile firms like Toyota and Ford that are taking steps to rid the dependency of oil.

The price of SUVs

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