MGMT 105 Lecture Notes - Lecture 1: Economic System, Market Economy, Planned Economy
20 Feb 2017
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Document Summary
Gas prices fluctuate because of supply, demand, uncertainty, and global trends. Us couldn"t produce enough, so we imported gas. Us then increased production and started exporting gas. Demand went up because of population growth and the popularity of suv"s and more petroleum-based products. China became a major consumer of petroleum. 2008 global recession reduced demand in most countries and lowered prices until 2010. Sharp increase in supply resulted in decreasing prices through 2014 and 2015. Auto manufacturers stepped up on fuel-efficient cars. Refiners increased their prices (more gas theft) Surging demand will lead to the world supply of petroleum peaking soon and then the available supply will begin to decline. New technology for extraction of oil (under ocean?) More business incentives to figure out how to replace dependence on oil and gas. Business an organization that provides goods or services to earn profits. Profits the difference between a business"s revenues and expenses. Dimensions of the external environment impact businesses.
