There are quite a number of forces that have combined together to allow business and products to have great influence in our society than any other time. With innovation, business can thrive well in 21st century. These forces are influenced by either demand or supply of the product which determine whether the business will take a negative or positive response. In oil industry the prices for oil are basically determined by supply-demand factors. The last major recession for oil industry was experienced in 1990.
Due to growing demand for oil in all the countries and shorter supplies they have made oil prices to increase drastically (Glomsrod, Osmundsen, 2005). Oil prices can be adjusted and they respond positively or negatively to the change in demand and supply. Therefore, due to low supply and high demand, oil prices are bound to stay high in medium term. Due to these high prices of oil as result of low supply and high demand, recession cannot be possibly avoided since global economy has increased with increasing demand. (Lovris, 2004)
When government pays farmers not to grow crops it boosts the economy since they will use the money given to them by government to purchase their products. When prices are low, government buy crops and put them in government reservoir and sell it to people later when the prices are high. This allows the economy of the country to grow considerably and thus while some countries discourages growing of crops since they can invest in other areas. One of the concepts covered in the discussion that is applicable to current work place is demand.
Demand for teachers in Baltimore city public school system is due to the increased number of students, classes and school. Therefore those who offered to teach in these schools were offered high salaries (Baumol, 2005). In economics, factors such as political, economic, social and change in technology influences the trend of a business greatly either positively or negatively. Efficiency a business leads to company to operate at a low capital and operating cost which consequently increases profit and reduces the use of resources and energy (Beardshaw, 2001).
Therefore, Business in the twenty first century has greatly been influenced by supply and demand. Supply and demand basically determines the marketability of products either positively or negatively. While economic determine the business trend
Reference: Solveig Glomsrod, Peter Osmundsen, (2005), Petroleum Industry Regulations within Stable States, Ash gate, New York. Amory B. Lolins, (2004), Winning OIL endgame, EarthScan, New York. John Beardshaw, (2001), Economics Student Guide, Pentice Hall, New York. William J. Baumol, (2005), Economics, Thomson London,