Exchange Rate Adjustments and the Balance of Payments

In a critical essay, evaluate the three major approaches to analyzing the economic impact of currency depreciation: the elasticities approach, the absorption approach, and the monetary approach.
Compare and contrast the three approaches and provide examples that distinguish them from each other.

 

Note:
– Paper should contain an introduction and conclusion and headlines
– Rely on Carbaugh as a key reference
– References should be alphabetized
– Free plagiarism
– Check the attached previous assignments for professor feedback regarding the format and content

 

 

 

 

 

 

OPEC and its power in the global petroleum supply

Maryam Saeed Bayounes – G20005407

Saudi Electronic University

ECN-500: Global Economics 13879

October 31, 2020

 

 

 

 

 

 

Begin the essay with its title.

Since the formation of OPEC, almost 50 years ago, it has gone through a series of events, downs, and ups, and while at it, it has managed to stay operational. This, if not anything else, should underline just how elaborate the organization has been while it has been in existence. This doesn’t, however, mean that it has been an easy ride while at it. This discussion sheds light on the dynamics OPEC has gone through over the last ten years. While at it, this paper will also elaborate on the effects these dynamics have had on one specific state, as this gives the whole discussion a perspective to consider. think on. This is an appropriate introduction.

Use headings to alert the reader of topic changes such as the following.

Organization of the Petroleum Exporting Countries (OPEC)

Before going into the deeper ends of this paper, it is essential to, first of all, expound on the meaning and relevance of OPEC. In full, this simply stands for Organization of the Petroleum Exporting Countries. OPEC was established on 14 September 1960, after the first gathering in Iraqi for the funder’s members: Saudi Arabia, Kuwait, Iraq, and Iran. Following OPEC initial agreement, it was approved with the United Nations Secretariat on 6 November 1962, in agreement with UN Resolution No. 6363. The Organization has many member countries, such as Algeria, Angola, Congo, Ecuador, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, Venezuela, and Equatorial Guinea. An intergovernmental organization of oil exporting developing nations organizing and combining the petroleum policies of its member states. OPEC aims to ensure the stabilization of oil prices in the international oil industry in order to prevent damaging and unnecessary uncertainty, with due regard being provided at all levels to the needs of the oil-producing nations and the need to ensure a solid income for them. Equally significant is OPEC’s position in ensuring an effective, economic and regular supply of petroleum to consuming nations as well as a fair return on capital for those operating in the oil sector (jodidata.2020).

Which as of 2020, the time of this paper’s writing, the headquarters in Vienna, Austria (Sulistiawati, 2018). As the name may already suggest, this Intergovernmental organization brings together exporters of oil and form in which they act and speak in one language whenever faced with a decision. As anyone would guess, this accords them the much-needed economies of scale. Dynamics it has faced in the global market in the last ten years.

Use headings to alert the reader of topic changes such as the following.

OPEC in the Last Ten Years

Discuss oil demand, supply, and prices too.

The last ten years haven’t been a regular period for this organization, and as some factors will be discussed later on in this paper, it has had to embrace new realities. At the same time, it has also had to weather a number of storms to keep on being operational and afloat. The dynamics include but are not limited to the following;

Technological Improvement in Oil Production: The last ten years have witnessed a lot of technological evolution and changes like no other period. The same evolution has found its way into the oil industry. The production of oil is now done under new technology, machines, and this has increased productivity to a great extent (Carbaugh, 2019). At the same time, it has opened up room for competition, as more countries are now able to afford the extraction and drilling of oil, thereby creating too much competition (Van de Graaf, 2020). In the grand scheme of things, this is a dynamic that OPEC has faced over the last ten years.

Rise of alternative sources of fuel and energy: For so long, oil was the main and source of energy and fuel. Through it, machines of various nature were run, and cars of all kinds also operated. In the end, it is only justified to state that before 2010, oil was a vital source of energy. This has however, changed, and alternative sources of energy have been growing in popularity. The biggest user of oil products initially were vehicles, but since the 2010s, smart cars or rater electric cars have been gaining popularity. As this happens, then the oil demand reduces, and this is, therefore, another dynamic that OPEC, as an organization, has to deal with and resolve as well (Carbaugh, 2019). Most importantly, this rise of alternative sources of fuel or energy has threatened the profitability ad future of OPEC.

Civil unrest in some of the member countries reducing the output: Most of the member countries of this Intergovernmental Organization come from the Middle East. A conversation involving the middle east, in general, will always be referenced by the civil and political unrest in some of the countries found there (Kocherha, 2019). An example of countries with civil unrest include Iran and Libya.  Business can only happen at its optimum when the civil and political environment is peaceful and constructive. Since 2010, countries in the middle east, where a huge membership of OPEC is located, have had to struggle with putting their houses in order (Claes et al. 2020). As this happens, they have, in most cases, missed out on producing better quantities of oil, thereby accounting for another dynamic OPEC has faced.

A lot of bureaucratic hiccups:  Another dynamic OPEC has had to face dealing with the bureaucracy, which varies from one country to another.  When operating in different countries, OPEC has had to deal with different policies and tariffs (Carbaugh, 2019). An example of this is the sanctions the US has on Iran, which is a member of OPEC. This, in the grand scheme of things, means that OPEC restrains from operating at full capacity or even operating in some countries, entirety. Looking at everything from a wider scope, it is now evident that indeed, the dynamics faced by OPEC, in the last ten years or so.

Examine OPEC from the perspective of an OPEC member country.

Conclusion

These are some of the main dynamics faced by the Organization of the Petroleum Exporting Countries over the last ten years. Through these dynamics, which are both challenges and even opportunities, it becomes easier to appreciate how bumpy the riad has been for this multinational organization. At the same time, it should be noted that while these points are enough for this discussion, they aren’t the only ones, as there are many others not mentioned in this case, but equally important. In a nutshell, the progression of this paper has managed to shed light on the dynamics faced by OPEC over the last ten years.

 

 

 

References

Alphabetize all references.

Carbaugh, R. J. (2019). International economics.

jodidata, J. (2020). Organization of the Petroleum Exporting Countries (OPEC). Retrieved October 30, 2020, from https://www.jodidata.org/about-jodi/partners/opec.aspx

Claes, D. H., & Garavini, G. (Eds.). (2020). Handbook of OPEC and the Global Energy Order: Past, Present and Future Challenges. Routledge.

Sulistiawati, L. Y. (2018). Climate Change Negotiations: Challenges and Opportunities for OPEC. CALE Discussion Paper, (16), 1-29.

Kocherha, M. (2019). The opec in the context of contemporary challenges.

Van de Graaf, T. (2020). Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world. In Beyond Market Assumptions: Oil Price as a Global Institution (pp. 63-77). Springer, Cham.

 

 

 

 

 

 

OPEC and its power in the global petroleum supply

Maryam Saeed Bayounes – G20005407

Saudi Electronic University

ECN-500: Global Economics 13879

October 31, 2020

Begin the essay with its title.

Since the formation of OPEC, almost 50 years ago, it has gone through a series of events, downs, and ups, and while at it, it has managed to stay operational. This, if not anything else, should underline just how elaborate the organization has been while it has been in existence. This doesn’t, however, mean that it has been an easy ride while at it. This discussion sheds light on the dynamics OPEC has gone through over the last ten years. While at it, this paper will also elaborate on the effects these dynamics have had on one specific state, as this gives the whole discussion a perspective to consider. think on. This is an appropriate introduction.

Use headings to alert the reader of topic changes such as the following.

Organization of the Petroleum Exporting Countries (OPEC)

Before going into the deeper ends of this paper, it is essential to, first of all, expound on the meaning and relevance of OPEC. In full, this simply stands for Organization of the Petroleum Exporting Countries. OPEC was established on 14 September 1960, after the first gathering in Iraqi for the funder’s members: Saudi Arabia, Kuwait, Iraq, and Iran. Following OPEC initial agreement, it was approved with the United Nations Secretariat on 6 November 1962, in agreement with UN Resolution No. 6363. The Organization has many member countries, such as Algeria, Angola, Congo, Ecuador, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, Venezuela, and Equatorial Guinea. An intergovernmental organization of oil exporting developing nations organizing and combining the petroleum policies of its member states. OPEC aims to ensure the stabilization of oil prices in the international oil industry in order to prevent damaging and unnecessary uncertainty, with due regard being provided at all levels to the needs of the oil-producing nations and the need to ensure a solid income for them. Equally significant is OPEC’s position in ensuring an effective, economic and regular supply of petroleum to consuming nations as well as a fair return on capital for those operating in the oil sector (jodidata.2020).

Which as of 2020, the time of this paper’s writing, the headquarters in Vienna, Austria (Sulistiawati, 2018). As the name may already suggest, this Intergovernmental organization brings together exporters of oil and form in which they act and speak in one language whenever faced with a decision. As anyone would guess, this accords them the much-needed economies of scale. Dynamics it has faced in the global market in the last ten years.

Use headings to alert the reader of topic changes such as the following.

OPEC in the Last Ten Years

Discuss oil demand, supply, and prices too.

The last ten years haven’t been a regular period for this organization, and as some factors will be discussed later on in this paper, it has had to embrace new realities. At the same time, it has also had to weather a number of storms to keep on being operational and afloat. The dynamics include but are not limited to the following;

Technological Improvement in Oil Production: The last ten years have witnessed a lot of technological evolution and changes like no other period. The same evolution has found its way into the oil industry. The production of oil is now done under new technology, machines, and this has increased productivity to a great extent (Carbaugh, 2019). At the same time, it has opened up room for competition, as more countries are now able to afford the extraction and drilling of oil, thereby creating too much competition (Van de Graaf, 2020). In the grand scheme of things, this is a dynamic that OPEC has faced over the last ten years.

Rise of alternative sources of fuel and energy: For so long, oil was the main and source of energy and fuel. Through it, machines of various nature were run, and cars of all kinds also operated. In the end, it is only justified to state that before 2010, oil was a vital source of energy. This has however, changed, and alternative sources of energy have been growing in popularity. The biggest user of oil products initially were vehicles, but since the 2010s, smart cars or rater electric cars have been gaining popularity. As this happens, then the oil demand reduces, and this is, therefore, another dynamic that OPEC, as an organization, has to deal with and resolve as well (Carbaugh, 2019). Most importantly, this rise of alternative sources of fuel or energy has threatened the profitability ad future of OPEC.

Civil unrest in some of the member countries reducing the output: Most of the member countries of this Intergovernmental Organization come from the Middle East. A conversation involving the middle east, in general, will always be referenced by the civil and political unrest in some of the countries found there (Kocherha, 2019). An example of countries with civil unrest include Iran and Libya.  Business can only happen at its optimum when the civil and political environment is peaceful and constructive. Since 2010, countries in the middle east, where a huge membership of OPEC is located, have had to struggle with putting their houses in order (Claes et al. 2020). As this happens, they have, in most cases, missed out on producing better quantities of oil, thereby accounting for another dynamic OPEC has faced.

A lot of bureaucratic hiccups:  Another dynamic OPEC has had to face dealing with the bureaucracy, which varies from one country to another.  When operating in different countries, OPEC has had to deal with different policies and tariffs (Carbaugh, 2019). An example of this is the sanctions the US has on Iran, which is a member of OPEC. This, in the grand scheme of things, means that OPEC restrains from operating at full capacity or even operating in some countries, entirety. Looking at everything from a wider scope, it is now evident that indeed, the dynamics faced by OPEC, in the last ten years or so.

Examine OPEC from the perspective of an OPEC member country.

Conclusion

These are some of the main dynamics faced by the Organization of the Petroleum Exporting Countries over the last ten years. Through these dynamics, which are both challenges and even opportunities, it becomes easier to appreciate how bumpy the riad has been for this multinational organization. At the same time, it should be noted that while these points are enough for this discussion, they aren’t the only ones, as there are many others not mentioned in this case, but equally important. In a nutshell, the progression of this paper has managed to shed light on the dynamics faced by OPEC over the last ten years.

 

 

 

References

Alphabetize all references.

Carbaugh, R. J. (2019). International economics.

jodidata, J. (2020). Organization of the Petroleum Exporting Countries (OPEC). Retrieved October 30, 2020, from https://www.jodidata.org/about-jodi/partners/opec.aspx

Claes, D. H., & Garavini, G. (Eds.). (2020). Handbook of OPEC and the Global Energy Order: Past, Present and Future Challenges. Routledge.

Sulistiawati, L. Y. (2018). Climate Change Negotiations: Challenges and Opportunities for OPEC. CALE Discussion Paper, (16), 1-29.

Kocherha, M. (2019). The opec in the context of contemporary challenges.

Van de Graaf, T. (2020). Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world. In Beyond Market Assumptions: Oil Price as a Global Institution (pp. 63-77). Springer, Cham.