Business Economics Assessment - Report Writing

Learning Outcomes:

a. Have a basic understanding of microeconomic and macroeconomic concepts.

b. Understand the microeconomic and macroeconomic environment affecting business activities in the economy.

c. Have knowledge of current economic issues, both domestic and international.

d. Use analytical skills to apply economic concepts to a range of economics issues.

Assessment Brief:  To write a report of 1500 words on an economic issue affecting demand and supply.

Assessment Description:

You are to write a 1500 words report on the supply and demand of oil.

The price of oil is determined by supply and demand. The price of oil has dropped to less than half now compared to its peak price two years ago.

a) Based on your understanding of the economic theory of supply and demand, describe why the price of oil has continued to fall so much even though oil is a necessity for industrial and domestic consumption.

b) With oil price falling, there will be some countries that will benefit and some countries which will lose out. How would the fall in price of oil affect the economies of:

i) huge oil importing countries such as China or India?

ii) huge oil exporting countries such as Saudi Arabia or Iraq?

iii) huge amount of oil of its own but has a big domestic consumption of oil such as USA or Indonesia?

c) Obviously with the huge fall of oil, there will be winners and losers at the business/industry level.

Identify and describe:

i) the businesses/industries likely to benefit from the fall of oil.

ii) the businesses/industries likely to lose out from the fall of oil.

Report sections:

The key sections to be included are: Executive summary; Usage of the economic theory of supply and demand, describe the winners and losers in the fall in the price of coal; Conclusion; Bibliography and Appendix.