Economies, Markets and Strategic Decisions Essay

Economies, Markets and Strategic Decisions - Essay Example It affects almost our entire lives, from the quality of our lives, our health and well-being; it determines not only our choice of transportation means but also our choice of work, and status2. Oil also affects our economic well-being, family structure, choice of friends and status in the society. It is with no wonder that, All things being equal an increase in the demand of a commodity will increase the price in the short run and supply in the long run. This is certainly true, for the short period in the case of an ordinary commodity. In the case of oil, the number is highly dependent on the availability of reserves. In the case of commodity, an increase in price would ensure an increase in supply which would serve to check the rise in price. Production on a larger scale leads to improved methods of production, and a fall in price below its original level. In the case of housing, no such reaction is possible3. There is nothing, to restrain the price (and the rent) of housing from rising indefinitely without limit, if the demand continue to increase. Conversely, if the demand for houses falls off, there is nothing to check the consequent fall in price and rent. In the case of ordinary commodities, supply would be diminished, because most things are either consumed4. 1.2 Demand and Supply Forces determining the price of Oil Over the last thirty years, OIL prices have risen in real terms by around 2 ' % a year and according to HM Treasury (2003) report this stands in contrast to other European countries such as Sweden, France, and Germany where real house prices have decline or remain relatively constant. In a study conducted by Guri (2003), it was postulated that low oil supply responsiveness must have contributed in greater trend increase in real oil prices in the world before the outbreak of the credit crunch that started at the end of the year 2007. According to Kuenny et al. (2007), paradoxically, while there is a problem associated with a shortage of hydrocarbons, there is also a problem associated with their superabundance which results in the release of carbon emissions into the atmosphere producing a dramatic impact on climate (Kuenny 2007). Kuenny (2007) stipulates that, the latter problem appears more important than the former, geopolitical crises, which may be generated by a shortage of hydrocarbons, appear to influence public opinion more than progressive climate change. Unless new energy fields can be Figure 1 and Two From Figure one above, an increase in the demand for oil from D1 to D2 has not been matched by a corresponding increase in the supply of oil. Oil are not like ordinary commodities. This has forced up price for oil from P1 to P2. This is because with the present state of the world economy, market, higher demand is translated into higher prices than supply. With the government weak oil supply in the previous years, and it inability to assume responsibility to increase the number of oil reserves, prices will continue to increase As supply becomes more elastic over time, assuming the conditions of demand remain unchanged, we expect to see downward pressure on prices and a further increase in the equilibrium quantity of oil bought and sold5.Because of the time lags and resources

Factors influencing students' choice towards private universities Research Paper

Factors influencing students' choice towards private universities - Research Paper Example Malaysian universities offered similar facilities in their colleges at a much lower cost with the sole aim of luring in the students going to Australia and New Zealand for higher studies. The Klang Valley region in Malaysia, also known as the Kaula Lumpur Metropolitan, became the hub many foreign students visiting the country for higher studies. There are nearly 7.5 million people in this region with ample number of students. At present there are over 8000 foreign students in the area. The Klang valley is connected to its neighbouring suburbs and cities through well structured RapidKL Light Rail Transit (LRT) and various other road and rail services. The infrastructure of the area is highly responsible for its flourishing trade and increasing number of HEIs in the area. Klang Valley can be reached easily from any part of Kaula Lampur and the adjoining cities. Malaysia has over 16 private universities and more than 4 foreign collaboration universities. Most of them are situated in the Klang Valley region of the Selangor state. The number of foreign students in the country increase from just hundreds in 1990’s to more than 12500 in 1999 after the introduction of the Higher Education Act in 1996. The Malaysian government’s liberalization policy in education attracted both foreign students and local students equally. However, foreign students who had more choices were targeted specifically by the HEI's in Malaysia. The private universities in Malaysia were mostly small self-financing colleges until the early 1990's. They grew massively like mushrooms in a rainy season only by mid-1990. The IT revolution which transformed the economy of many eastern countries was partly responsible for this. The...From the student perspective they are wide variety of technology oriented courses starting from 6 months duration to full-fledged management courses ranging for nearly three years or more. They feel the courses offered in the Malaysian universities are much e asier to complete as the teaching method is more or less similar to the Korean education system. Whereas the western universities offer only selected courses and limited time to complete the same in student visa. Further, the academic standards expected by the Western universities are also very high. Obtaining a degree from the foreign collaboration university in Malaysia is much easier than studying directly in the western countries and it still gives them a competitive edge over others having degrees from domestic universities. Culture, cost and the chances to win better jobs easily are the three main push factors attracting high number of Korean students towards the Malaysian HEIs.