...Introduction to Macroeconomics 5 June 2011 High Gasoline Prices Cause and Effect Hurricanes, wars and all sorts of chaos could lead to shortages in our oil supply. These shortages would bring expected higher prices. But what happens when other factors are at work? The laws of supply and demand indicate “Quantity demanded rises as price falls, other things constant”. Or alternatively: “Quantity demanded falls as price rises, other things constant” (Colander 84). For some, it is easy to blame the speculators and separate them from the laws of supply and demand. In reality, speculators only changed who purchased the future supply. They did not change the principle fact that there was a shortage, albeit an artificially created one, but still a shortage. Until 2000 US energy futures were traded only on regulated exchanges within the US and they were subject to great oversight by the CFTC in order to detect price fixing and fraud. Recently, there has been a very large growth in trading contracts that look like futures contracts and are structured exactly the same. The only difference, these contracts are traded on an unregulated market. This unregulated OTC electronic market was exempt from CFTC oversight by a provision inserted in the late hours of the 106th Congress. Enron and many other large traders lobbied congress for this passage. By buying large quantities of futures contracts and pushing the prices higher speculators have given oil companies the incentive...
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...diesel is a crucial component used in manufacturing facilities (Mankiw 115-133). There are constant fluctuations in oil prices, making the price of a barrel of crude oil vary on a minute-by-minute scale. Fluctuations in fuel prices can be a primary factor in the cost of transportation and manufacturing to name but a few. Therefore, fluctuations in the price of crude oil have constant effects on the global economy. These effects have made many investors and citizens alike to be wary of any fluctuations (Butcher 45-77). Oil price fluctuations are bad for the global economy. High crude oil prices contribute to a higher cost of living, thereby affecting national and global economic performance. The question then begs; what is the cause of the erratic crude oil price fluctuations in global scale? There are various reasons as to why there are frequent fluctuations in crude oil prices. In particular, just crude oil production itself can cause major fluctuations in crude oil prices. For instance, reduced production would create shortage of crude oil in the market, and following microeconomics principles; the price would then automatically rise. In light of this, this term paper seeks to analyze the causes of erratic oil price fluctuations on a global scale. The increase in the volatility of oil prices has raised a number of questions on the reasons that would be behind those fluctuations. Research shows that fluctuations in global economic activities and speculation activities...
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...“benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their judgment affects the company’s reputation in society. There are several benefits of business ethics. Ethics contribute to (Ferrell, Fraedrich, & Ferrell, 2011, pp. 18-21): • Employee commitment – comes from employees who believe their future is tied to that of their organization and their willingness to make personal sacrifices for the organization. • Investor loyalty – ethical conduct results in shareholder loyalty and can contribute to success that supports even broader social causes and concerns. • Customer satisfaction – one of the most important factor in a successful business strategy; a company must continue to develop, alter, and adapt products to keep pace with customers’ changing desires and preferences and it must seek to develop long-term relationships with customers and stakeholders • Profits – must have adequate financial performance in order to nurture and develop an ethical culture. Because of the actions of the American Red Cross following 9/11 and Hurricane Katrina, their benefits of business effects were damaged. Employee commitment wavered because of the actions of the organization. Because of the lack of monitoring some employees...
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...School of Management Business Economics GM545 Online Graduate Course Summer Session A, July 2010 Project Part 1 16 July 2010 Exercise 1: Everyone’s Gasoline Problem One of the most classic application examples of supply and demand is the gas/petroleum market. Gas prices are established through basic supply and demand, when demand rises and supply falls, prices rise quickly; and just the converse when supply increases and demand falls, prices decrease (although rare in modern day occurrence). Fluctuations in gas prices are also the result of multiple industry factors including uncertainty in the economy, economic demands for oil and the price per barrel of oil. Speculation and forecasting also lend a hand in continuously moving market equilibrium. Intermediaries in the market, such as gas wholesalers, can also have a profound impact on the market through price increases, charging higher premiums for service and handling. Multiple influences affect the price of gas, some direct, others indirect. One such case of an indirect influence on price is natural disasters. The hurricanes in the Gulf of Mexico region have impacted gas prices on more than one occasion, more recently Hurricane Katrina. The devastation that rocked the nation impacted the supplies of crude oil and gas productions leading to a shortage. This shortage was felt almost immediately as prices per gallon of gas skyrocketed. (Chevron Corporation 2005-2008) Government regulations and taxation also impact the...
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...Abstract Disasters have devastating and severe acute and long-term consequences for individuals and communities. The paper expounds on the social ramifications of disasters, while highlighting a disaster’s effects in vulnerable populations. The collaborative actions of communities, governments, public health, media, and health professionals are also depicted in the paper. Lastly, implications for Advanced Practice Nurses concerning leadership, involvement in public policy and education, and development of advanced disaster planning are illustrated. Keywords: disaster, disaster response and planning, social ramifications, advanced practice nursing. Disaster--the term itself invokes feelings of dread, despair, and devastation. Furthermore, the effects of disasters on human condition are far-reaching and unpredictable. For health care professionals, disaster preparedness and response entails an understanding of the socio-economic issues and the collective responsibilities of multiple agencies when a disaster strikes. Disasters affect individuals, families, societies, and communities, with little time for any warning or preparation.1 The collective obligations of government, communities, hospitals, and medical professionals are underscored during this trying time. Introduction What is a disaster? Calamity, catastrophe, tragedy, are just some of the words uttered when a disaster occurs. Perry and Quarantelli2 explained that disaster has several meanings depending...
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...The Effects of Globalization and the Coffee Industry Assignment #5 ECON 401 December 30, 2014 Globalization has had an effect on many aspects of our lives, socially, economically, politically, and culturally. Since the 1970’s trade barriers have been minimized and the coffee industry has been a high import and export for many countries being the second most traded commodity in the world behind crude oil (Chapman, Hodges, 2011). As the industry evolved and large corporations fed on the increasing demand for coffee, it has become a commodity many countries rely on; 20 million people depend on coffee for their livelihood (AAFC, 2010), whether it be the north American coffee retailor to the small farmer, we can say that globalization has and will continue to affect every aspect of the coffee chain. Supply, Demand & Price It is evident today that people need to have their coffee. In the 1960’s and 70’s half of the worlds coffee came from Columbia and it was about $3.00 per pound (Lewis, 2014). The industry was booming and protected by the Columbia Coffee Federation. This was a regulatory party who acted as a mini union for the coffee farmers who basically had no voice to the state. At this time it was good business to be in agriculture in Columbia. Since then demand has only risen as the large coffee retailors such as Starbucks and Seattle’s best have made coffee drinking a major social pastime. The shifts in the coffee supply and demand are not predicted by...
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...INDIAN INSTITUTE OF MANAGEMENT INDORE ONE YEAR EXECUTIVE POST GRADUATE PROGRAMME (EPGP 2009-10) Supply Chain Management Instructor - Prof. Jayanth Jayaram Supply Chain Issues and RecommendationsDisaster Management Date: 30-01-10 Submitted By: Vikram Duggal 2009EPGP 040 TABLE OF CONTENTS 1 2 4 Executive Summary ................................................. Error! Bookmark not defined. Disaster Management-Supply Chain Perspective .................................................... 4 No table of contents entries found. Executive Summary Disaster management deals with avoiding risks. It involves preparing, supporting, and rebuilding society when natural or man-made disasters occur. Disaster management is a continuous process by which all individuals, groups, and communities manage hazards in an effort to avoid or ameliorate its impact. A supply chain, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. Customers in this case are people facing the crisis. They formed the focus of the entire supply chain development. Over the past few years, the natural disasters floods, hurricanes etc have highlighted the low levels of disaster preparedness and inability of the hospitals and relief organizations to respond effectively. The quick response of relief organizations in the early stages of disaster can lower...
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...A. the supply curve for gasoline to shift inward. B. the supply curve for gasoline to shift outward. C. the quantity of gasoline demanded to move out along the demand curve. D. the quantity of gasoline supplied to move in along the supply curve. 2. Suppose the price of tomatoes dramatically increases. Which of the following could cause this change? A. Hurricanes during the late summer damages the Florida crop, shifting supply left B. A reduction in tariffs of tomatoes from Central American, shifting supply right C. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right D. Advertising for catsup increases demand for catsup, shifting the demand curve to the left 3. An increase in price and decrease in quantity are consistent with a: A. leftward shift in demand and no shift in supply. B. leftward shift in supply and no shift in demand. C. rightward shift in supply and a rightward shift in demand. D. rightward shift in supply and a leftward shift in demand. 4. An increase in quantity and an indeterminate change in price are consistent with a: A. leftward shift in demand and supply. B. rightward shift in supply and demand. C. rightward shift in supply, keeping demand constant. D. rightward shift in demand, keeping supply constant. 5. Suppose caviar sales soars at the same time price increases. What would lead to both a higher quantity sold and higher price of caviar? A. A shift in demand to the...
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...raw material (water is the substantially important material for all products of the company ,as company didnt suffer from any shortage of water supply but having abundant amount of water and having quality and the to ensure sustainability of this precious natural resource,is different thing sustainability is responsibility of company)(envoirment) Being consider it as a threat Water is the main ingredient in substantially all of our products. It is also a limited resource in many parts of the world, facing unprecedented challenges from overexploitation, increasing pollution, poor management and climate change. As demand for water continues to increase around the world, and as water becomes scarcer and the quality of available water deteriorates, our system may incur increasing production costs or face capacity constraints which could adversely affect our profitability or net operating revenues in the long run. sweetneers sweetners in us is high fructose corn syrup hfcsavailable from domestic sources and subject to fluctuation in price.CCBSS is a limited liability company that is owned by authorized Coca-Cola bottlers doing business in the United States. Among other things, CCBSS provides procurement services to our Company for the purchase of various goods and services in the United States, including HFCS. The principal non-nutritive sweeteners we use in our business are aspartame,However, our Company purchases aspartame, an important non-nutritive sweetener that is...
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...Material Management Proposal Material management department is typically responsible for directing the supply chain. Material management is an umbrella department that has many other functions (e.g., central store, laundry and linen operations, and sterile processing). The core purpose of material management is to direct and control the movements of goods in an efficient manner through a hospital system (Langabeer, 2008). This material management proposal document will elaborate on the role materials management plays within a hospital and the role of operations managers in this process. This document will further identify possible constraints a hospital may experience in its supply chain, the potential effects and justification on implementing a new collaborative planning process, and provide suggestions on how to manage a hospital supplied during a disaster. Role of Materials and Operations Management The role of materials and operations management plays within a hospital system is vital to the success of any health care organization. According to Langabeer (2008) material management controls significant resources and have total expenditures, or spending at 50% of a hospital budget. Materials management not only directs and controls the supply chain of a health care organization it is responsible for managing the flow of goods throughout the hospital and carry out supply and resource logistics. Materials management has numerous meanings and some hospitals view material management...
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...Demand And Supply Of Crude Oil 10/10/2009 Introduction Crude oil is a naturally occurring substance (i.e., “Fossil Fuel”, formed from organic remains over a period of millions of years) found in certain rock formations in the earth. It is a dark, sticky liquid which, scientifically speaking, is classified as a hydrocarbon. This means, it is a compound containing carbon and hydrogen, with or without non-metallic elements such as oxygen and sulfur. Crude oil is highly flammable and can be burned to create energy. Derivatives from crude oil make an excellent fuel. Uses Different types of oil that are obtained from crude oil are as mentioned below: 1. Ethane and other short-chain alkanes 2. Diesel fuel (petro diesel) 3. Fuel oils 4. Gasoline (Petrol) 5. Jet fuel 6. Kerosene 7. Liquefied petroleum gas (LPG) 8. Natural gas Certain types of resultant hydrocarbons when mixed with other non-hydrocarbons, create other products like: 1. Alkenes (olefins), which can be manufactured into plastics or other compounds. 2. Lubricants (produces light machine oils, motor oils, and greases, adding viscosity stabilizers as required). 3. Wax, used in the packaging of frozen foods, among others. 4. Sulfur or Sulfuric acid. These are useful industrial materials. Sulfuric acid is usually prepared as the acid precursor oleum, a byproduct of sulfur removal from fuels. 5. Bulk tar. 6. Asphalt 7. Petroleum coke, used...
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...We hear the term “greenhouse gas” a lot—but what is it? Humans add various gases to the earth’s atmosphere every day; these gases (known as “greenhouse gases”) consist primarily of carbon dioxide, ozone, chlorofluorocarbons, nitrous oxide, and methane, and tend to warm the earth. Trees help counter greenhouse gas production during photosynthesis, by taking in carbon dioxide as waste material and producing oxygen, which of course we all need to survive. Scientists predict that the daily addition of greenhouse gases to the atmosphere, combined with daily removal of large portions of the world’s forests, will raise the earth’s average temperature by several degrees in the next century. This in turn will raise the level of the sea and potentially create significant changes in weather patterns on a global scale. As we move into the future, many climatologists expect that most of the United States will warm. What we do not know yet is how to scientifically predict which parts of the nation will become wetter or drier. We do know there is likely to be an overall trend toward increased precipitation and evaporation, and more intense weather systems, in the form of violent rainstorms, blizzards and sun-baked, drier soils. The Facts—What Do We Already Know About Changing Global Conditions (Global Warming)? Global temperatures are rising. Observations collected over the last century suggest that the average land surface temperature has risen 0.45-0.6°C (0.8-1.0°F) in the last...
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...Material management department is typically responsible for directing the supply chain. Material management is an umbrella department that has many other functions (e.g., central store, laundry and linen operations, and sterile processing). The core purpose of material management is to direct and control the movements of goods in an efficient manner through a hospital system (Langabeer, 2008). This material management proposal document will elaborate on the role materials management plays within a hospital and the role of operations managers in this process. This document will further identify possible constraints a hospital may experience in its supply chain, the potential effects and justification on implementing a new collaborative planning process, and provide suggestions on how to manage a hospital supplied during a disaster. Role of Materials and Operations Management The role of materials and operations management plays within a hospital system is vital to the success of any health care organization. According to Langabeer (2008) material management controls significant resources and have total expenditures, or spending at 50% of a hospital budget. Materials management not only directs and controls the supply chain of a health care organization it is responsible for managing the flow of goods throughout the hospital and carry out supply and resource logistics. Materials management has numerous meanings and some hospitals view material management as an umbrella department...
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...Supplier chain strategies are one of the most important aspects of supply chain management. The key to success of an organization is the supply chain strategy. The supply chain makes up 55-85% to total costs for a business, so it is understandable why so many people are searching for newer and better strategies. (Bruce O. Bartschenfeld) A Keiretsu Network: Keiretsu network is a network composed of manufactures, supply chain partners, distributors and financiers who remain financially independent but work closely together to ensure each other’s success. The formation of a keiretsu allows a manufacturer to establish stable, long-term partnerships, which in turn helps them to stay lean and focus on core business requirements. (Whatis.com) Virtual Company: Virtual companies rely on a variety of supplier relationship to provide services on demand. In this strategy, a company forms a network with other companies. All companies are dependent upon one another. Each member of the network performs essential functions to the project. (Bruce O. Bartchenfeld) Vertical Integration: A vertical integration refers to a firm’s ownership of vertically related activities. The greater a firm’s ownership extends over successive states of the value chain for its product, the greater its degree of vertical integration. The extent of vertical integration is indicated by the ratio of a firm’s value added to its sales revenue: the more a firm makes rather than buys, the lower are its bought-in...
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...Coastal Plain, which extends eastward for at least another 75 miles where the sediments attain a maximum thickness of about 40,000 feet. The sediments of the Coastal Plain dip eastward at a low angle, generally less than one degree, and range in age from Triassic to Quaternary. The younger formations crop out successively to the southeast across Southern Maryland and the Eastern Shore. A thin layer of Quaternary gravel and sand covers the older formations throughout much of the area. Mineral resources of the Coastal Plain are chiefly sand and gravel, and are used as aggregate materials by the construction industry. Clay for brick and other ceramic uses is also important. Small deposits of iron ore are of historical interest. Plentiful supplies of ground water are available from a number of aquifers throughout much of this region. The Atlantic Continental Shelf contains abundant...
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