Business Article Review – Book Report/Review Example
Business Article Review Increase in the price of gasoline in the recent past has seen an upsurge in the price of commodities in the market popularly known as consumer price. The American market has been the hardest hit by the upsurge because it is the biggest economy in the world. There is large consumer of the commodity in this country. The country also boasts of the largest number of industries as compared to other industries in the world. This led the cost of living to increase to the highest in ten months.
The consumer price index also indicates an increase by 0.4 percent, which was according to the economists’ predictions. The other factor that has caused this increase in price is the low supply that these countries are able to produce. The level of technology used is also low that has caused low productions. More recently is the current revolts experienced in Arab countries, which are the major producers of oil. An example is the current revolts in Syria and Bahrain. In addition, sanctions imposed on oil producing countries such as Iran have greatly contributed to this shortage of oil in the world.
Another factor that has caused this great rise in commodity prices is the increase in inflation. The value of the dollar has continued to weaken over the last few months in comparison to other major currencies. An example is the Britain’s sterling pound, and the euro. This article has a direct relation to the topics of understanding how economics affects the businesses and doing business in the global markets. It also shows the risks that an investor will be willing to take if they decide to invest in this business. The risks are directly related to the profits the investor wants to make. In every business, it is the primary objective of the investor to maximize profit.
Kowalski, Alex. “Consumer Prices in U.S. Rose in February as Gasoline Jumped.” Bloomberg
Business week. 2012. Web 16, March 2012