The main objective of macroeconomic policies is to offer a steady economic setting that is favourable to nurturing strong and sustainable economic growth. They fundamental elements of macroeconomic policy include monetary policy, fiscal policy, and exchange rate policy. Oil market shocks, in addition to domestic and foreign throughput, generate macroeconomic fluctuations in the economy (Crosby, 2012). Macroeconomic policies play a significant role in economies during periods of oil crisis. These policies are all the more imperative for West Africa as the volatility of oil prices in the past few years has instigated these key challenges into greater emphasis. Over a period of simply a few years, oil prices have fallen from $115 per barrel to $70 and further down to $50. These fluctuations can result in substantial changes in fiscal revenue generated by the West African oil producing nations. Moreover, it is key to note that oil is a resource that can be exhausted and is therefore a key concern for the domestic economies. Nations in West Africa produce the greatest amount of oil in the content, which can substantially profit them, and their governments have a key role to play in these resources (Davis, Fedelino, and Ossowski, 2003).
West Africa, which is a nation that is renowned for oil production is experiencing oil crisis, akin to the rest of the world. Subsequent to four years of comparative stability at approximately $105/barrel, the prices of oil have decreased sharply since mid-year 2014. It is imperative to note that this is not the very first gradual swing in oil prices as there have been just about five other periods of deteriorations in oil price surpassing 30 percent and numerous more periods of oil price increases. In the course of the past 50 years, these fluctuations have stimulated an importance on the macroeconomic implications of oil price fluctuations (Huidrom and Zhao, 2015).
Declining oil prices more often than not have an impact on economic activity and inflation by shifting aggregate supply and demand and instigating macroeconomic policy responses. With respect to a supply side perspective, decreased oil prices result in a decrease in production cost. In delineation, supply side economic policies are the group of government policies which purpose to alter the fundamental structure of the economy and to augment the economic performance of markets and industries. Imperatively, the lower the production cost across an entire variety of energy-centred commodities might be delivered to customers and therefore, in an indirect manner, decrease inflation. In addition, the decreased production cost can additionally lead to increased investment. On the other hand, from a demand side perspective, through the reduction of energy bills, a decrease in oil prices leads to an increase in the real income of consumers and thereby resulting in a surge in consumption (Huidrom and Zhao, 2015).
It was in this backdrop of economic instability that economic nationalism also reared its ugly head. International crooks and foreign multinational companies rushed in and used both legal and illegal methods to gain contracts for supplying all sorts of stuff like stock fish, frozen chicken and meat, cars, and custom-made wine. Outlandish contracts were even given for supplying water and firewood to military barracks and prisons. Foreign governments and
This was good for those that felt OPEC was getting too strong because these changes would have been very difficult to make had the embargo and the oil prices not become such an issue (Reid, 2004). Many countries begin to look for alternatives to the supplies that they were getting from Arab nations and in the years immediately following the embargo many efforts would be directed at the promotion of
2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will
A large body of literature has treated many different aspects of these influences on Asia, Europe and the United States (Busser & Sadoi, 2003). The importance of the study relates to the current trends taking place in Libya where aggressive steps have been taken in recent years to normalize relations with the international community. For example, Libya opened up its programs to develop weapons of mass destruction to international
In addition to these external factors, Thomson (202) notes two colonial and post-colonial economic policies and developmental strategies that proved to be erroneous in the long-term, having an ultimately damaging effect upon the ability of African countries to make sound, profitable investments. The first of these is that African governments focused excessively upon import substitution, while the second is that too much revenue was invested in the expansion of state
Global Business Cultural Analysis Nigeria Nigerian History Synopsis of Nigerian government Nigerian monarchy to presidential system The evolution of Nigeria from British control to a civilian democratic government Nigerian major commodities Oil Food The major elements and dimensions of culture in Nigeria Cultural dimensions Individualism Power distance Masculinity Uncertainty Model of culture Universalism or Particularize How is the integration of elements and dimensions that Nigerians doing business in the country? The effects of governments on the prospects for its business around the world How the elements and dimensions compared