Archive for the ‘Week 7’ Category

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Blog 8: Libya protests: oil prices rise as unrest continues

February 22, 2011

Due Date: February 22, 2011

Article Sourcehttp://www.bbc.co.uk/news/business-12533620

Article Date: February 22, 2011

Article Title: Libya Protests: Oil Prices Rise as Unrest Continues

Summary:

As the protests continue and as Gaddafi refuses to quit, oil prices continue to rise and stock markets have begun to drop. Libya is the 12th leading producer of oil, but with the many protests companies are slowly withdrawing their business. In addition, stock markets have fallen due to the unrest and the possibility of it spreading throughout the Middle East where other major oil producers are.

Reflection:

I feel that oil is one thing that is going to impact all parts of business. Just as they mentioned in the article how already stock markets have been dropping or even closing and that inflation has been going up as oil goes up. All of this means that it will cost businesses more to import or export products and will basically impact any part of the supply chain. In addition, high oil prices mean that the consumer’s budgeted spending will now have to increase for oil and decrease for other parts (most likely the spending for any product or service that does not fulfill a need).

This article also means that companies will have to continually assess the environment of Libya and how the unrest is impacting business. If companies keep monitoring their business within the Middle East and Africa they will be better prepared to respond if something happens (like this unrest). It also allows a business to understand what consumers in the country will need, if they need to withdraw from the country, and the balance of trade along the supply chain. Any country that is dealing with political instability is going to impact international business so companies must always keep their eyes and ears open so that they can deal with the impact. Finally companies may want to consider during these times what they will do if they are unable to do business with a certain country (i.e. if the country is unstable does that lead them to withdraw and move on or should they stay in the country)

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