The Increase in the Global Market Prices of Oil Products - Research Proposal Example

Research Proposal on the Different Ways in which Developing Countries could Counteract the Negative Social and Economic Impact of Sudden Oil Price Increase in the Global Market Student’s Name Instructor’s Name Subject / Course Date Introduction Aiming to have a better understanding with the major factors that trigger the sudden increase in the global market prices of oil products as well as the different ways in which we could counteract the negative social and economic impact of sudden oil price increase in the global market, the research proposal will discuss the process on how the literature review will be conducted. As part of the research proposal, a proposed title, purpose of the research study, problem statement, significance of the problem, definition of terms, hypothesis or research question, methodology, and research schedule will be provided. Upon completing the research study, some recommended ways on how we could lessen the negative impact of oil prices on our economy will be tackled. Proposed Title “Different Ways in which Developing Countries could Counter-act the Negative Social and Economic Impact of Sudden Oil Price Increase in the Global Market” Purpose of the Research Study By determining the major factors that contributes to the sudden price increase in the market prices of crude oil, the purpose of this study is to provide several ways wherein developing countries could counter-act its negative social and economic impact. Information that will be gathered from the research study will be used in developing some strategic ways that will empower the local people in developing countries to reduce and minimize the negative social and economic impact of the continuously increasing oil prices. Problem Statement / Research Question Based on the impact of supply and demand on the world market prices of oil, what are the ways wherein developing countries could counteract the negative impact of oil prices on social well-being and economic growth? Knowing the impact of supply and demand for crude oil will enable us to understand the major factors that could significantly make the oil prices in the world market to either increase or decrease. Identifying the major players in the oil market as well as its capacity to produce oil is equally important since this information will allow the researcher as well as the readers to know whether or not there is really a shortage of crude oil in the world market. Significance of the Problem European countries are among the less affected countries despite the continuously increasing market prices for crude oil because of the high purchasing power of euro. With regards to the matter of exchange rate, economic analysts explain that “dollar dominated” countries are the ones that are seriously facing the negative consequences of paying a higher price for oil and other basic commodities. (Iqbal, 2008) In general, the sudden increase in the world market prices of oil products has significantly affected billions of people around the world. Given that a lot of developed and developing countries around the world are heavily relying on the use of oil products as a source of energy (USAID Policy Paper, 1984), millions of local businesses around the world especially those who are in the manufacturing sector are badly hurt with the continuously increasing oil prices in the world market. As of June 2008, the prices of crude oil had reached as high as $142.99 per barrel (Frei, 2008) as compared to $25 per barrel back in 2003 (William, 2008). With the continuously increasing prices of oil per barrel, not only does the cost of transportation increases but also the prices of major commodities like rice, wheat, sugar and other food including other non-food products. (Southern States News, 2008) Research Methodology As part of the literature review, the researcher will utilize the search engines of Google and Yahoo in order to gather the latest news with regards to the factors that have significantly caused the world market prices of crude oil to increase from the usual US$25 per barrel back in 2003 up to US$142.99 per barrel as of June 2008. In relation to the importance of the research topic, the researcher will first discuss the negative social and economic consequences of the crude oil inflation. Based on academic books and journals, the researcher will explain and summarize the significance of the basic law of supply and demand with regards to the current market price of crude oil. The explanation behind the law of supply and demand for crude oil will enable the readers to fully understand the possible causes of price increase. After discussing the impact of supply and demand over the current market price of crude oil, the researcher will seek to identify and enumerate all options that will enable our countrymen to counteract the social and economic threat that is highly associated with the high prices of crude oil. Research Schedule The proposed study will be completed in a short period of approximately two week or 14 days. During the first couple of days, the researcher will write a research proposal with regards to the sudden increase in the world market prices of crude oil. Upon the completion of the research proposal, the researcher will submit the paper to the instructor on the third day onwards. As soon as the research proposal has been approved by the instructor, the researcher will proceed in gathering related reading materials from the qualified and well-known news report and business magazines, books, and academic journals between the sixth and seventh day. On the eighth day onwards, the researcher will begin writing the official research paper. This will last for the next couple of days followed by finalizing the research paper on the tenth day. The researcher plans to submit the official research paper to the instructor the following day. In case there is a need to make any further revision, the researcher seeks to complete the revised paper one day after the instructor has provided some information with regards to the structure and quality of the research work. It is possible for the researcher to extend the proposed research schedule depending on the amount of work needed during the revision stage aside from other unforeseen events. (See Appendix I – Proposed Research Schedule for the Study on page 6) *** End *** Appendix I – Proposed Research Schedule for the Study Write a research proposal on the sudden increase in the world market prices of crude oil Research approval Gather related materials for the literature review Work on the official research paper Finalize the research paper Submit research paper Complete revision if necessary Submit revised research paper Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 References: Frei, E. (2008, June 27). Oil Marketer. Retrieved June 30, 2008, from WTI, Brent in new records near $143 per barrel: http://www.oilmarketer.co.uk/2008/06/27/wti-brent-in-new-records-near-143-per-barrel/ Iqbal, S. (2008, April 24). DAWN the Internet. Retrieved June 30, 2008, from Rupee hits all-time low vs. dollar: http://www.dawn.com/2008/04/24/ebr6.htm Southern States News. (2008, June 5). Retrieved June 29, 2008, from Rising Food Prices Affecting Consumer Confidence: http://www.southernstates.com/sscinfo/news/0608_foodprices.shtml USAIDPolicyPaper. (1984). Energy. Washington,DC: Bureau for Program and Policy Coordination. William, J. L. (2008). WTRG Economics. Retrieved June 30, 2008, from Oil Price History and Analysis: http://www.wtrg.com/prices.htm Read More