Negative impacts of tourism - Assignment Example

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The significant decline in the oil price is due to the errors in the monetary policy that is implemented by the Central Bank which has led to the…
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Download file to see previous pages n the oil price on the economy is not supported by economic growth contraction and this remarkable fall in the oil price has been experienced by the economy for the first time. The present decrease in the oil price on the economy is not due to the fall in demand but increase in supply of oil on the economy. The consumption of oil on the economy is directly related to the economic growth. The fall in the oil price has negative impact on the exporters of the world. The fall in the oil prices will result in the deficit budget of the government and this requires the increase in the taxes and cut in the government spending. The decrease in the oil prices will result in the situation of budget deficit on the economy and emergence of various social problems. The fall in the oil price leads to the situation of weak global demand of oil on the economy and it leads to the decrease in the investment and consumer spending and increase in the debt burden.
The fall in the oil price has negatively affected the economy. The crash of oil price on the economy has an adverse affect on the global economy. The decrease in the oil prices were considered as favourable for the countries like US and Japan where the price of Gasoline was very low . On the contrary the decrease in the oil price has affected severely to the oil exporting countries like Russia and Venezuela since Venezuela may encounter unrest on the economy and increase in the debt obligation and the fall in the oil prices have adversely affected the oil rich countries like Saudi Arabia as they will face severe loss if the price of oil continued to remain low.
And this fall in the oil price experienced by the economy in the year 2014 has resulted due to the fact that the price of oil has rouse significantly in the year 2000 and with the increase in the oil price many of the energy companies gained profit through the extraction of oil from the difficult oil drilling places .In U.S they adopted the technology of drilling ...Download file to see next pagesRead More
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