Question

Components of the economic system and its importance in the business environment It argues about the components of the economic system and the importance of these in the business environment of a situation raised: Conflicts in the Middle East have resulted in increases in one of the most treasured resources, known worldwide as "black gold," or Be it, oil. This has marked in terms of globalization the way of doing business and the general behavior of the society in which we live today. One of the effects of greatest impact is gasoline, whose consumption is demanded by multiple sectors that play a leading role in the economy where we interact. Briefly argue about the following: What alternatives should society consider to deal with this situation? Explain your answer. Consider the effect of the cost of gasoline at the individual, business and government level.

Answer 1

1.    Gasoline. Yes , it played a major role in industialisation,globalisation, altogether the whole society changed with it's influence.I t is truly a black gold.Because we were searching for a good,reliable ,efficient power resource.Gasoline turned to be the answer.

                  About 40% of the petroleum in the world is produced by OPEC, Organization of petroleum Exporting Countries (Soudi Arabia ,Iran ,Iraq ,Venezuela...etc).They are like cartels in oligopoly and control supply and price of gasoline.The countries which doesn't have resources have to pay the price they set and buy gasoline.Countries are forced to do it,because every man on earth,business depend upon these power resources.

In cars as petrol or diesel , fuel for Motors and Machines ,For Trains ,plains ,buses ,Transportation,Even electricity,agriculture,plastics ,synthetic materials..etc eveything needs this as a source of power and raw materials.So there is an almost inelastic demand for it in the world.

Cost includes so many aspects.It can be it's cost to buy it.Value is added it's each stage of refining ,transportation ,taxes ,marketing ..ect.High tax is usually applied on this ,because of inelastic demand.Thus value addition and cost goes on .I t will affect all other goods.Because any good produced have to be transported,uses gasoline raw materials ..etc so any increase in price of gasoline will increase the all other good prices.It's like a chain.Also there is environmental cost.Global warming due co₂ emission from gasoline burning..etc.I t is affecting our climate and ecosystem.All are in danger.Earth temperature increasing,Ice melting in polar region,Increasing sea level,Floods ..etc.So many lives affected ,economy too.India ,Bangladesh ..etc are most affected nations.

It's alternatives are already in progress.We started to use electric cars and vehicles for transported .Chemical batteries for storage of energy.Non depleting ecofriendly resources for production of many things.Even Biodiesels were invented.Hydrogen is most efficient fuel and scientist are try for it too.Sun ,Wind ,Water..etc are other alternative in electricity production.