Your Qna     New Questions     About Qna
EQNA is a growing interactive people-knowledge network with more than 120,000 questions and 450,000 answers from over 55,000 members worldwide. With all friendly functions, EQNA will be a fun place to join, share and discover knowledge, an open net space allowing you to connect with other people having specialized knowledge or ones with same interests to yours. EQNA login features secured logins using Twitter and Facebook enable you to place questions without sharing your personal information to us. Lets get out and join our community today!
Ask a Question
John

What is the effect of high energy costs on the global economy?

Globally Interested:

Hi, Emily. Would you believe that you question is backward?

It is the global economy that has the effect on the price of energy.

A growing economy uses a growing amount of energy. As the demand for energy increases, so does the price.

China and India currently have rapidly growing economies. Their demand for is oil constantly increasing. As their demand increases, along with the demand from other countries, so will the cost of energy.

John:

High energy costs increase the cost of manufacturing and transporting goods.

This increases the price that manufacturers sell their goods. This reduces the desire of people to buy so many goods. Fewer goods are bought so manufacturers produce less. They need less people in their factories. Some people lose their jobs and so have less money to spend on goods - which puts even more pressure on the manufacturers.

At this point the government intervenes by increasing spending which creates government jobs. This solves the problem in the short term, but involves a huge transfer of wealth from energy importing countries to energy exporting countries which is unsustainable in the long run.

Cutekannan:

High energy costs are directly related to energy demand.

John:

but what is the effect on the global economy.. is the global economy performing where it should be compared to the price of oil?

Cutekannan:

The global economy should be where the total sum of the invisible hands of many markets dictates it should be. Energy costs are just one of those many hands.

And, besides, everything is relative. Energy costs are not really that high right now....people in the US are willing to pay more for the equivalent of a gallon of bottled water than for a gallon of gasoline.

Answer:
Text ColorBackground Color
BoldItalicUnderline
LeftCenterRightJustify
Ordered ListBulleted List
IndentOutdent
Horizontal Rule
SubscriptSuperscript
HyperlinkImage
Design ModeDesign
Html ModeHtml
 

Top Question And Answer

  • What effect would a radar testing station have on the enviroment?
  • does having a democratic president increase construstion jos causing a domino in effect in spending?
  • is Verizon benefit plan 537 still in effect for retired employees
  • Does the phases of the Moon really effect people? What examples do you know of?
  • What is the funniest side effect you've heard from drug company commercials?
  • can you put a shield on 576i so ipods&cell phones wont effect hr monitor please reply 541-410-1958
  • Why doesn't USA switch to solar energy?
  • With all the talk of the "new light bulb" saving all that energy what about hazardous waste?
  • what can be a good source of energy for the year 2030? fossil fuel or coal and why?
  • Are there any solar energy companies that are looking to employ a Draughtsman?
  • The holy pilgrimage site "Resurrection Tree Ranch" is for sale to fund American Energy Independence?
  • Need consultant in phosphate (P4) production, energy savings and environmental protection. Anyone?
  • Global Warming????
  • why do some small business do not participate in global trading?
  • I need an article on Consumers and The Global Market
  • global branding stella artois
  • Is there a company name Pan Global Financies
  • Is there a company name Pan Global Finances?
  • If you follow the economy, what is your opinion of today's FED action?
  • Would a Cap on Fuel Prices help or hurt our Economy?
  • What type of economy did the Founding Fathers have in mind for the U.S.?
  • Will flying a China made American flag stimulate the economy?
  • so are you gonna spend that tax $ bush is giving us and help the economy, or stash it away?
  • Ron Paul has a plan to revitalize the economy.
  • I want to buy a bag,what is the baghttp:www.goyardreplicasale.com/Grade-Quality-Goyard-Saigon-Tote-Bag-PM-8941-Black/196/index.html
  • How is it:www.topreplicagears.com
  • Www.mokahandbags .com
  • Facebook new account opening form
  • Hom bhr0165301533Www.facebook.new account
  • Hom bhr0165301533
  • Hom bhr0165301533Www.facebook.new account
  • Hom bhr0165301533
  • how do I get mms message fro. mmsweb.iwireless.com
  • Find out how many cars of my model are registered
  • What would happen if a letter opens in the mail
  • Facebook new account open
  • Facebook New Account Creation
  • Facebook new account creation
  • locating a business that closed