Question

we faced an unprecedented downfall in oil prices all around the world
during the first 5 months of 2020. Lots of industries have been affected and
supply chains have been altered consequently. Analyze how oil price fall can
affect industries in Canada post Covid-19 as an environmental force and explain
your response within the context of transportation industry bringing three major
reasons to support your answer.
2. Since 2010 housing market in BC is on the never ending price rise. Vancouver has
faced the highest price boom ever since then and the average rental apartments in
the city has risen to the unprecedented $2300.00 rent. Discuss the reasons behind
the price surges considering the balance of supply and demand in the market and
predict how the market will respond post Covid-19. Try to focus on the driving
forces behind the rise and the other current environmental factors which will or
may come to effect post Covid-19.

3. 2020 has been rough to world’s economy so far. NAFTA has turned to USMCA and
BREXIT happened at the turn of the decade. J. Bolsonaro a conservative figure
has come to power in Brazil and Parliament in Ottawa has seen more seats
slipped away from the Liberals towards the conservatives. All of these actions
have the common ground for nationalism and isolation right at the time we need
unity more than ever to fight the man made disasters such as climate change,
pollution, and the pandemic. Nations separating from each other and running for
their own good regardless of the overall goodwill of the international community.

Discuss how these actions and behaviours can cause havoc in international scale
and what will be the aftermaths of such actions.
4. July 2020 will be the month with fewer restrictions on airline industry. Seems like
airline industry has gained their ground back from the government and trying to
fill for the cumulated losses they faced during the pandemic. We will see more
number of international flights, either essential or nonessential, arriving at the
airports and potentially become a threat. What would be your stand in this balance
of power between the federal government and the airline industries thriving for
profit. Bring three major grounds for your reasoning considering the following
factors: airlines are not necessarily private corporations, federal government is
responsible for the health of the citizens and residents, federal government is
responsible to provide fair competition ground for the corporations to compete,
and there is no clear distinction between essential and non essential travel yet.

Answer 1

The effect of oil prices fall has a direct relationship with industries where transportation is an essential part of the business. (1) The fall of oil prices will have a multi-pronged effect on the transportation industry. On one hand there is a direct reduction in cost of transportation of goods. This will in turn have a cascading impact on how goods are priced as more and more goods increasingly have transportation cost built into the final price of the product. Fall in oil prices means an expectant reduction in fall in prices of goods to some degree. This however is not a simple and direct co-relationship. A reduction in price in the immediate aftermath of covid-19 due to fall of oil prices may lead to increased demand as a result of pending shortfall of supplies and also lowered prices. This however I will reach a point of inflection quickly where the demand shall surpass the supply and the effect will be an escalation of prices for goods. This can also lead to increase production levels to meet the demand and as a result it may also so bring about greater energy consumption at the production centres. Since a lot of modern day production is energy-intensive and energy itself is sourced from a lot of non renewable resources of energy therefore there is an automatic relationship between the initial impact of fall of prices leading two successive steps until ensuring increased energy consumption with a adverse impact on environment.

(2) Another effect of fall of oil prices is a greater incentive for the transportation industry to engage in long haul transportation. This in turn will lead to a greater intensity of cross country transportation of goods. This can be seen as a self arresting factor in long term because this will lead to greater consumption of oil itself and a greater demand for or oil will lead to escalation in prices of oil while also increase production to meet the demand. Thus eventually not only the immediate fall of prices will strength and consumerism it will again push the production and price levels of oil to higher values. Interestingly retail consumption with some exceptions is always a progressive curve. So while increased transportation costs in the later stage in hence price of goods to some extent but the increased consumer consumption will continue to escalate the demand and push the prices and production of oil upwards. This too will have an adverse impact on environment.

(3) Finally as a result of the covid-19 pandemic and the consequent reduction in consumption and prices of oil, e commerce and associated supply change will enhance their footfall as well as growth. But even the enhanced market consumption through e commerce requires and elaborate and engaged transportation system to continue and improve its working. So while there can be e some reduction in transportation of goods with consequent impact on energy consumption and environment overall transportation across the country will increase and instead of retail warehouse to warehouse movement of goods across cities and States will become more prevalent. This too shall increase transportation oil demand as well as the consequent environmental impact.

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