The United States Economy As The Global Economy - 935 Words

From 2010 until the end of 2014 oil prices remained relatively constant. With very little fluctuation over these four years, the average price per barrel of oil was around 110 dollars. That price has been more than cut in half within the past year. The price for United States crude oil is now just 48 dollars a barrel, the lowest it has been since 2009 (BBC News). So what is the cause for this sudden change and to what effect will this have on the United States’ economy as well as the global economy? There are three core contributors that account for this sudden dip in oil prices. These contributors are a low demand for oil in many countries, specifically Europe, that is caused by a lack of economic growth, the increase in The United States’ oil production, and The Organization of the Petroleum Exporting Countries (OPEC) increase in oil production. With many of Europe’s economically struggling countries the increase in production of oil which in return yields lowe r prices has benefitted them. Europe’s weak economy is able to contribute to this drop in oil prices in that Europe’s currently low inflation rate and weak economy has greatly lessened the demand for oil. The lack of demand for oil in one of the most prominent import continents in the world has forced oil manufactures to lower their prices in order to retain Europe as a top oil export. Large oil exporters do not want to lose Europe as an export because that would also mean losing billions of dollars per year.Show MoreRelatedUnited States Trade Policy: Current and Future Role in a Global Economy2523 Words   |  11 PagesThe United States has for over two centuries been involved in the growing world economy. While the U.S. post revolutionary war sought to protect itself from outside influences has since the great depression and world war two looked to break trade restrictions. The United States role in the global economy has grown throughout the 20th century and as a r esult of several historical events has adopted positions of both benefactor and dependent. The United States trade policy has over time shifted fromRead MoreThe Global Economy As A Positive Sum Game1151 Words   |  5 Pagesperspective, one views the global economy as a positive-sum game. This means that everyone stands to gain from cooperation. In essence, the positive-sum perspective views the global economy as going from a smaller pie to a larger pie. Regardless of what percentage of the pie each actor receives, cooperation still increases each actors â€Å"piece of the pie.† Through cooperation, liberalists point out, actors greatly benefit. The positive-sum perspective in the global economy can be observed through tradeRead MoreNarrative Interview : The Global Economic Climate During The 2008 Global Financial Crisis ( Gfc )1083 Words   |  5 Pagesfather, James Trainor as the ideal candidate to provide a comprehensive recount of the global economic climate during the 2008 Global Financial Crisis (GFC). And how his experiences of economic fluctuations and policies during the GFC changed his perspectives and understandings of macroeconomic decisions, as well as their effects on the modern world. 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Another indicator is the GDP, whichRead MoreUS Power reflected on the global political economy Essay1167 Words   |  5 Pages Yohanan Zemichael PSCI 2602: A03 October 11, 2012 The framework of global political economy has evolved through a series of historical periods. For this paper, I will be comparing the overall structure and organization of the global political economy during the Bretton Woods period (1945-1975) and the Contemporary period (1975-2010). The main objective will be the United States’ projection of political power throughout these two historical periods. By comparing, the BrettonRead MoreThe Economic Health Of The World Is Not Dependent On Just One1438 Words   |  6 PagesThe economic health of the world is not dependent on just one â€Å"thing†. There is no single variable that can be narrowed down that is responsible for the ups and downs that we as a global economy experience in any given day, month, or year. 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This background paper delves into a few key points on the United States’ closest ally, the United Kingdom (UK), as well as examines the US interest in the UK. It first takes a look at the political and social relations of the UK, paying special interest to its relations with the European Union (EU). Next it examines the UK’s economics and resources. It then shows US interests in the UK as they relate to the aforementioned points. 2. As the United States’ closest