How Oil Prices Affect Gross Domestic Product (GDP)

How Oil Prices Affect Gross Domestic Product (GDP) Every country needs some oil to run its errands, but the oil producing nations (OPEC nations) are few in number. From an economic point of view, whenever the suppliers are few, they tend to manipulate the prices of their products. Essentially, OPEC nations agree on the amount of oil to produce and the prices of selling the oil. OPEC nations discuss the target markets, and they dictate the distributing channels for their own good.Advertising We will write a custom research paper sample on How Oil Prices Affect Gross Domestic Product (GDP) specifically for you for only $16.05 $11/page Learn More In a span of one month, oil prices can raise considerably, but since oil has no substitute, the demand for oil remains inelastic. Indeed, oil prices affect nations’ GDPs in one way or another. This paper will give a clear outlay of the effect of oil prices on the various variables in the GDP equation using clear illustrations and graphs. The gross domestic produ ct (GDP) presents the market value of the economic activities within a nation. The GPD sums all the amounts of monies spent in a nation. The four factors that measure the GPD include the consumption levels of the consumers, investment levels of businesses (amount businesses spend on purchasing goods and services), the government spending, and the net exports. In this case, the net exports amount is the difference between the exports and imports. Oil prices have an indirect effect on each factor of the GDP equation, which in turn affects the nation’s GDP levels (Maeda 112). GDP = C +I +G+X Where C is the total consumption of the consumers, I is the investment levels of the businesses,Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More G is the federal, state and government spending, and X is the net exports (exports minus imports). Oil prices and their effects on the t otal consumption of consumers Consumption is directly proportional to the income levels of a household because people can only spend the amount of money that they earn. However, not all the money is spent; earners have to pay income taxes to the government, and some households save some of their income. Whenever the oil prices are high, businesses tend to increase the prices of their products to cater for the rise in the production costs (Pinno and Serletis 202). This factor decreases the consumers’ spending powers, and consumers tend to buy few items. Essentially, some consumers would decide to save their money rather than spend it with the hope that the prices of products would decrease in the near future. The price elasticity of demand will play a critical role in such a case, where, consumers will only purchase necessities and shy away from buying luxuries. Consumer spending forms the largest part of the GPD in most nations. Therefore, whenever the oil prices rise, they r educe the consumer spending indirectly, and consequently, the GPD reduces. In the United States, two third of the GDP comprises of consumer spending. Therefore, a decrease in consumer spending would have a significant effect on the GPD of the US (Kilian and Vigfusson 79). Oil prices and their effects on the total investments As stated before, business investment is the amount of money that businesses spend on purchasing products and services. Moreover, businesses make long-term investments through the purchase of land, fixtures, and equipments. A rise in oil prices is a shock on the supply side of the economy and it has adverse consequences on the economies of countries (Kim 140).Advertising We will write a custom research paper sample on How Oil Prices Affect Gross Domestic Product (GDP) specifically for you for only $16.05 $11/page Learn More Obviously, businesses will experience an increase in the variable costs, especially for manufacturing businesses that heavily depend on oil. The businesses will resolve on increasing the prices of their products to remain at the same profit margins. From an economic point of view, an increase in prices causes the demand of products to contract, and the businesses are likely to have reduced sales than before. If the oil prices continue to rise, there is a possibility of an economy to experience an inflationary effect. Essentially, the decreased sales means decreased profits; therefore, businesses will have insufficient money to invest. The amount that businesses invest contributes to about 15% of the nation’s GDP. Although the 15% contribution to the nation’s GDP is considerably small, a decrease in the total investments will decrease the nation’s GDP. Oil prices and their effects on the total government spending The government is an overseer that responds to tough economic conditions of the nation. As described, an increase in oil prices is a supply side shock that would inflate the price levels of products and deflate the real output of the economy. The government can respond by relaxing the monetary policy through decreasing the interest rates and taxes. Therefore, businesses will have their production costs somewhat reduced because of the reduced taxes. Another alternative would be increasing government spending by subsidizing the costs prices. However, the options may have adverse consequences on the general economy. Increasing the oil subsidy bill would mean that the government would have to increase its budget and this would affect the other sectors of the economy. Although upstream companies like the Oil And Natural Gas Corporation and Oil India would share a third of the subsidy burdens, the government may have to make short-term borrowings to cater for the unanticipated shock. On the other hand, decreasing interest rates and taxes would decrease the government revenues. Essentially, rise is oil prices would decrease the government spending on goods and services and increase its spending on transfer payments, which is a threat to the GDP. Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Oil prices and their effects on the total net exports If there is an increase in fuel prices, a country that exports manufactured goods may experience an increase in the production costs of the products that it exports. Therefore, the country may lower its productivity and export less of the products than before. Moreover, the country is forced to spend more money on importing the essential petroleum product than before. The two incidences would bring an imbalance on the total net exports and the country may have negative net exports. Conclusion Clearly, a rise in oil prices is an external shock that affects economies in one way or another. Economies that entirely depend on oil-energy for their production processes would suffer greatly if oil prices increased drastically. Sometimes the oil prices drop, but they have negligible effects on the GDP. Therefore, to reduce the effect of the increase in oil prices, companies should find ways of containing other costs and increasing the la bor productivity (Ravazzolo and Rothman 461). It is clear that oil is an essential product with an inelastic demand. Therefore, governments that do not reserve enough oil when the oil prices drop will continue suffering from the supply shocks. It would be advisable for governments to build oil reserves that would greatly help the nation during shortages and during shocks. Kilian, Lutz and Robert Vigfusson. Do Oil Prices Help Forecast U.S. Real GDP? The Role of Nonlinearities and Asymmetries. Journal of Business Economic Statistics 31.1 (2013): 78-93. Print. Kim, Dong. What Is An Oil Shock? Panel Data Evidence. Empirical Economics 43.1 (2012): 121-143. Print. Maeda, Akira. On the Oil Price-GDP Relationship. Japanese Economy 35.1 (2008): 99-127. Print. Pinno, Karl and Apostolos Serletis. Oil Price Uncertainty and Industrial Production. Energy Journal 34.3 (2013): 191-216. Print. Ravazzolo, Francesco and Philip Rothman. Oil and U.S. GDP: A Real-Time Out-Of-Sample Examination. Journal of Money, Credit Banking 45.3 (2013): 449-463. Print.

Centralized and decentralized research analysis of United States and Essay

Centralized and decentralized research analysis of United States and Japan's educational system - Essay Example o the No Child Left Behind (NCLB) Act, a number of education scholars and practitioners assert that the federal government is pursuing, or possibly already fulfilling a significantly greater function. In the meantime, although the Japanese education espoused the education paradigm of the United States after the Second World War, k-12 education is far more centralized in Japan than in the U.S. Curriculum responsibility is concentrated on the national Ministry of Education, Culture, Sports, Science, and Technology.iii The United States and Japan are two countries that are ranked in the top four for best educational systems in 2010, even though each country uses a different teaching style to achieve success with faculty and students performances.iv However, both nations are lacking key factors to sustain success with students in today’s changing economy. Based on the present government reformed acts in both the United States and Japan educational systems there is a need for (1) more technical skills in basic education, (2) a need to help support teachers and parents to renew the value of education into students, and (3) remove violence from the education environment in order to achieve success in each country’s educational system. In 1856, the United States formed its first kindergarten. Compulsory education, by the 1950s, had become institutionalized, yet the current k-12 education remains in its formative years.v Ever since the establishment in 1979 of the US Department of Education, the structure of k-12 education has been identical to that of at present, but has experienced a chain of modifications to address the evolving requirements of education.vi The education structure of the United States is distinct from several other developed nations. Education is mainly the duty of local and state government, and hence, for instance, there is modest standardization. The independent states have substantial power over the curriculum and over the prerequisites that

Recruitment and Retention of nurses Research Paper

Recruitment and Retention of nurses - Research Paper Example The nursing profession is an important department in the development of every nation. The profession of nursing is even more important to the United States because the government more particular about the good health care of the citizenry. It is therefore not surprising that the Obama Government has devoted so much into health-care. â€Å"The Obama campaign estimates his health care reform plan will cost between $50 and $65 billion a year when fully phased in† (Laszewski, 2008). THE PROBLEM DEFINED Owning to the importance of the nursing profession and the inevitable situation of employee turnover and retirement, there is the urgent need for research and review into the recruitment of nurses to find workable means of making the recruitment of nurses successful, meaningful and mission-oriented. Closely related to the recruitment of nurses is also the issue of retention of nurses. This is because research has shown that one important factor for ensuring employee retention is thr ough positive and well organized employee recruitment (Fertile Ground Detroit, 2008). To this effect, this write-up is committed to researching and reviewing the shortfalls of recruitment processes and exercises that take place in various nursing organizations and institutions. What is more, the write-up shall critically analyze the failures of recruitment and placement exercises that have been going on in the nursing fraternity in times past. Much attention shall be placed on the duties of human resource managers in various organizations since they form the nucleus of employee recruitment processes in various organizations. Again in this write-up, the researcher shall relate the positive impacts of effective employee recruitment on employee retention. What is more, the employee shall give out personal suggestions on how recruitment of nurses can be made effective. PROBLEM ANALYSIS The Chartered Institute of Personnel and Development, CIPD (2011) explains that â€Å"recruitment is the process of having the right person, in the right place, at the right time.† From this definition, it is clear that there are certain processes and guidelines that should be followed in recruitment exercises in various nursing organizations. To this end, the major problem that has been linked to poor recruitment is wrong approach towards the recruitment exercise. Wrong approach to Advertisement Firstly, most organizations take the wrong approach in the advertisement and publicity of recruitment vacancies. This is because most often than not, organizations looking for nurses restrict their advertisement to nursing schools and few community newspapers with the view of attracting fewer candidates in order to save money. However, this limits the number of potentially capable candidates for the vacancy. Constitution of Recruitment Team Another problem has to do with the constitution of recruitment team. In some organizations, the recruitment process is left in the hands very few people. This however reduces efficiency because the work becomes tedious for the few people. Inefficiencies are seen when the people have to spend much time undertaking manual processes when those tasks could be

The Role of Technology in Business Essay Example | Topics and Well Written Essays - 750 words - 2

The Role of Technology in Business - Essay Example Making information available online and reaching prospective consumers via Social Networking can increase the visibility of the products and their qualities. With the increasingly hectic lifestyles of young professionals; marketing online and allowing for sales via the internet makes purchasing convenient and easy, and thus leads to more sales. The consumer populations keep changing as the baton of purchasing power and desire are passed from generation to generation. It is necessary that the industry recognizes the changing needs of the new generation of consumers and make available products and services that compliment the needs of the consumers in such a manner that the products are most visible to the consumer in a positive manner. Knowledge about production and delivery is becoming increasingly common as the connections increase between different parts of the world. Consumers are becoming aware of products that are not local, and are making demands for them; which are quickly met be importing technology and skills. This increases the set of suppliers for any said product or service, increasing the competition for existing organizations. This competition has to be met head-on in order to survive. The busy consumer will prefer to give allegiance to the organization that makes the product and information about it available easily to the consumer. If a consumer is able to get the details s/he requires easily; they are more likely to buy the product. Needs change as the environment of the consumer changes. A product or service that sold well before may not be received well in new circumstances. It is important that the organization is tuned to the pulse of its market and modifies its product/service to suit the needs of its new consumers. Â  

Literature paper #2 Essay Example | Topics and Well Written Essays - 1250 words

Literature paper #2 - Essay Example A sensible reading of the text would reveal Gregors metamorphosis as a metaphor of the modern society where people have become quite alienated, burdened with familial responsibilities and obligations, neurotic, and lack understanding, love, or communion. Twentieth-century modernist images of metamorphosis, on the other hand, lead us to question not only the boundaries of man’s relationship with nature and the supernatural, but the very status of humanity itself, transformed into the monstrous. Gregors metamorphosis is governed by uncontrollable factors that cause both physical and mental changes in his personality. No doubt, Gregors tragedy stems from his strong sense of familial obligation and responsibilities; his subsequent guilt due to his inability to fulfill his responsibilities turns him into a bug and this metamorphosis brings about drastic changes in the gender roles and sibling relations.Gregor’s metamorphosis underlines that man’s existence is absurd a nd meaningless and that human nature is essentially monstrous. His transformation is more inward than physical; it is Kafka’s inner conviction that human nature is inevitably monstrous and meaningless that makes him to depict Grgor’s character as animalistic, and the only possible escape for Gregor is to succumb to the ultimate reality-death. In Metamorphosis, one experiences man’s inner struggle and longing to survive in a world where one cannot find any sort of solace. Everyone seeks his/her existence and is likely to get disillusioned and desperate when things go beyond one’s comprehension and control. Even though the metamorphosis of Gregor sounds to be supernatural and beyond human comprehension, the touching story of Gregor’s misfortunes points to the meaninglessness of human life; man is incapable of fighting the supernatural elements and the essential monstrous human nature that unleashes itself in such turbulent

Annotated Bibliography on Tacrine

Annotated Bibliography on Tacrine Sathyan G et al (1995) studied the effect of solvents such as water, propylene glycol and ethanol and their mixtures for transdermal drug delivery on in vitro permeation of tacrine through rat and human skin. Largest flux and permeability were observed from ethanol-propylene glycol and water-ethanol binary mixtures, respectively. Excellent correlation between the rat and human skin data was observed. The formulations were found to be devoid of skin irritancy property. Ethanol-propylene glycol (1:1) mixture with a flux of 98  µg/cm2 through rat skin was found to be a promising solvent system for the transdermal delivery of Tacrine. Yanq Q et al (2001) formulated microparticles of tacrine using poly (D,L-lactide-co-glycolide) (PLG) by solvent evaporation technique. Effect of formulation variables on Encapsulation efficiency and release was studied. Results showed an increase in encapsulation efficiency by 10 times and decrease in rate of release when molecular weight of polymer was changed from 8,000to 59,000 and 155,000 The study indicated that tacrine microparticles have a strong potential for long term treatment of Alzheimer’s disease. Kankkunen T et al (2002) investigated the iontophoretic delivery of Tacrine on 10 healthy adult volunteers by comparing a commercial LOGEL electrode with an ion exchange fibre formulation. Clinically significant plasma concentrations 21.3+5.9 ng/ml was achieved by commercial system whereas 14.9+2.6 ng/ml was achieved through ion exchange fibre system. The study showed that iontophoretic delivery of Tacrine is safe .Serum alanine transferase levels Jogani VV et al (2008) prepared and characterized mucoadhesive microemulsion of tacrine by the titration method for brain targeting for the treatment of Alzheimer’s disease. Selective nose to brain transport was confirmed by lower Tmax values (60 min) with intranasal administration than 120 min with intravenous administration. The brain bioavailability of tacrine after giving optimized formulation was 2 times more than obtained with intranasal tacrine solution Scintigraphy study in rabbits showed more uptake of Tacrine in brain after intranasal administration. The results indicated better, quicker transport of tacrine in scopolamine-induced amnesic mice brain and rapid regain of memory loss after intranasal administration. Hence, results suggested that intranasal tacrine delivery hold promising in treating Alzheimers disease. Wilson B et al (2010) prepared Tacrine-loaded chitosan nanoparticles by spontaneous emulsification method. The particles were characterized for size, zeta potential, drug-loading capacity and in vitro release. Mean particle size for drug-to-polymer ratio 1:1 was found to be 41  ± 7 nm with average zeta potential of +34.7  ± 1.5 mV. The release of tacrine from nanoparticles ranged from 83.04%  ± 1.41% to 94.64%  ± 0.84% for 12 hours depending on the drug-to-polymer ratio. In vitro release studies showed an initial burst of 30 minutes followed by continuous and slow release of the drug. The release of drug from nanoparticles was diffusion-controlled, following Fickian mechanism. Controlled release characteristics suggested prolonged residence time which could improve the bioavailability of tacrine in the brain. Luppi B et al (2011) prepared albumin nanoparticles of Tacrine hydrochloride with beta cyclodextrin, hydroxypropyl beta cyclodextrin and sulphobutylether beta cyclodextrin using coacervation method and thermal cross-linking. Prepared nanoparticles were then soaked in solutions of tacrine hydrochloride and lyophilized for effective drug loading. Evaluation results showed that nanoparticles had a spherical shape with negative charge and mean size .Dixit S et al (2013) formulated mouth dissolving tablets of Tacrine hydrochloride by direct compression using different superdisintegrants. Results indicated that mouth dissolving tablets showed acceptable hardness, friability, mechanical strength and weight uniformity. The optimized formulation disintegrated in less than 1 minute in mouth and released >98% of Tacrine within 14 minutes. The study reflected the potential of mouth dissolving tablet of Tacrine for quick absorption, improvement in bioavailability, increased patient compliance especially in patients with difficulty in swallowing. Corace G et al (2014) developed liposomes delivery of tacrine hydrochloride by nasal route using cholesterol, phosphatidylcholine, a-tocopherol and/or Omega3 fatty acids by reverse phase evaporation technique followed by membrane filter extrusion. Results reflected that prepare d liposome formulations had a mean diameter varying from 175nm to 219nm with polydispersity index Haughey DB et al(1994) developed a reversed-phase high-performance liquid chromatographic method(RPHPLC) with fluorescence detection for the analysis of Tacrine and 1-hydroxy-, 2-hydroxy-, and 4-hydroxytacrine (metabolites of Tacrine) in human plasma. The alkalinized samples of human plasma were extracted with a mixture of 90:10%v/v of chloroform and l-propanol. Calibration curves were constructed for clinically significant concentrations(5 to 30 ng/ml) for all the analytes. The method was found to be precise and accurate. The developed method was sensitive enough for the determination of tacrine and its metabolites after Cognex (40 mg single dose) was administered orally to normal volunteers. Hansen LL et al (1998) developed and validated a method for simultaneous estimation of tacrine and its metabolites, 1-hydroxytacrine , 2-hydroxytacrine and 4-hydroxytacrine in human plasma and urine .The method involved one-step liquid–liquid extraction with ethyl acetate. Determination was done by isocratic, reversed-phase high-performance liquid chromatography using fluorescence detection (excitation: 330 nm and emission: 365 nm).The developed method demonstrated simplicity , precision, accuracy and sensitivity with limit of detection as 0.5 nM for 2-hydroxytacrine and 4-hydroxytacrine, 2 nM for 1-hydroxytacrine and tacrine in plasma. Mean recovery ranged from 84 to 105% for tacrine and its metabolites in plasma. Aparico I et al (1998) developed a spectrofluorimetric method to estimate tacrine in human serum and pharmaceuticals. The fluorimetric method allowed the determination of Tacrine in the range of 1–70 ng /ml in aqueous solutions of acetic acid–sodium acetate buffer (pH 5.6) with (excitation wavelength of 242 nm and emission wavelength of 362 nm. Chollet DF et al (2000) developed a high-performance liquid chromatography (HPLC) assay method for therapeutic monitoring of Tacrine. The method was based on simple protein precipitation by acetonitrile or cold methanol followed by isocratic separation on a CN column eluted in reversed-phase mode. Developed method was found to be precise, robust, accurate and suitable which was demonstrated by analyzing more than 1,000 plasma samples from patients with Alzheimer disease . Ortuà ±o JA et al (2007) developed a flow-injection pulse amperometric method for estimation of Tacrine on the basis of ion transfer through a plasticized poly(vinyl chloride) (PVC) membrane using a four-electrode potentiostat with ohmic drop compensation. Lnear relationship between peak height and concentration of tacrine was found up to 4Ãâ€"10-5M .Limit of detection was found to be 1Ãâ€"10-7M. The method was found to be linear, reproducible, specific and repeatable. Qian S et al (2012) developed an assay for simultaneous determination of Tacrine and its metabolites in rat plasma and brain tissue. The analytes along with internal standard were extracted from plasma of rat or tissue homogenate of brain by liquid-liquid extraction with the help of ethyl acetate. The separation was done on Thermo Hypersil BDS C18 column using mobile phase of acetonitrile and ammonium formate-triethylamine (pH 4.0) with fluorescence detection. Percentage recovery varied from 82.1% to 93.2% in h rat plasmas and brain tissue. The developed method was found to be simple, sensitive and reproducible procedure for the estimation of Tacrine and its metabolites in rats after oral administration.

Essay on Camus’ The Stranger (The Outsider): Apathy -- Camus Stranger

Apathy in The Stranger (Outsider) Often times an author incorporates a thought or philosophy into a work that can shape or reshape the attitude emitted from the novel. In Albert Camus', The Stranger, the Existential philosophy that the author fills into the work give an aura of apathy. With the opening lines of "Mother died today. Or, maybe, yesterday; I can't be sure," Camus immediately sets a tone of indifference (1). Though the protagonist, Mersault, is not completely without cares, the overall attitude of passiveness he has toward himself, as well as toward others, give the entire novel a tone of apathy. With an analyzation of Mersault's character, an automatic attitude of nonchalance is quickly seen. Mersault does not lie to himself, let alone to others, because he has no need to. He does not care about the set laws of society, and he feels that he has no one to please, including himself, which is a reason why he has no qualms about being brutally honest and not hiding his feelings. This is ...