Skip to main content

Home/ ZIS IB Year 2 2013-14/ Group items tagged arms

Rss Feed Group items tagged

Julius Baldauf

Arms sales to developing countries | The Economist - 1 views

  •  
    We see in the chart that in developing countries arms are considered a normal good. This is apparent as the number of sales is at its lowest in 2007, 2008, and 2009 - the time period of the late financial crisis. Incomes decreased and therefore also government expenditure. So since the governments had a reduced budget, they were forced to purchase fewer arms. However, once the global economy started to recover from the crisis, incomes rose again. Thus, governments were able to spend more on arms again (which we see in 2010 and 2011). This is a good example of how income, a non-price determinant of demand, can influence the demand on a good. Another non-price determinant of demand is government policy. The article states that Saudi Arabia was the developing world's biggest arms buyer in 2011, with deliveries of $2.8 billion - an unusually high number. Therefore, there must have been a change in Saudi Arabia's government policy; otherwise they would not suddenly be buying more arms. So now we see how government policy influences demand on arms. 
Josh B

G-7Calls for Increased Oil Output to Meet Demand - 0 views

  •  
    G-7 call on oil-producing countries to increase their oil output in order to prevent high oil prices. The G-7 countries are prepared to call upon the International Energy Agency in order "to take appropriate action to ensure that the  market is fully and timely supplied." The IEA's countries supplied 60 million barrels of crude after the Libyan output was disrupted after the armed uprising. Oil prices have advanced 24 percent since reaching a 2012 low in June as stockpiles fell. U.S. authorities haven't contacted the IEA on the use of emergency oil supplies.  The U.S. has 727 million barrels of petroleum in reserve. Rising consumer prices have dented consumer confidence in gasoline, threatening to curb spending that accounts for 70 percent of the world's largest economy. The average price of a gallon of regular gasoline has increased by 23.5 cents this month. 
1 - 2 of 2
Showing 20 items per page