Economic Effects of Higher Oil Prices Upon U.S. Households Research Paper

Economic Effects of Higher Oil Prices Upon U.S. Households - Research Paper Example dollar spent, ultimately passing the savings on to consumers. Likewise, when the value of the dollar is low against foreign currencies, something that can happen with sinking interest rates, U.S. dollars buy less oil than before. This, of course, can contribute to oil becoming costlier to the U.S., which consumes 25% of the world's oil (Are oil prices and interest rates correlated?) At the same time some people believe that oil price rise may decrease the automobile use and the decreased automobile use may decrease the demand for oil. In such circumstances, the oil producers may force to decrease the prices of oil. However, the above argument seems to be illogical since oil is a nonrenewable energy source. Oil producing countries definitely know that people cannot avoid the use of their own vehicles for a long time and they will be forced to use it again in the future when they realize that the alternate options are inconvenient. In fact oil companies produces more oil when the oil p rices increases and they produce less when the oil prices come down. They know very well that they will get higher prices in future because of the absence of other feasible energy sources. Dollar value fluctuates heavily in the global market because of the fluctuation in oil prices. "As the dollar declines in value, so does the price of oil in non-dollar terms," said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon. "Consequently, foreigners bid up the price of oil and other dollar-denominated commodities. The result is that the price of crude oil and other commodities rise in dollar terms as the dollar falls in value against other currencies" (Twaronite) Since United States is a superpower and one of the most advanced countries in... As the essay declares people believe that oil price rise may decrease the automobile use and the decreased automobile use may decrease the demand for oil. In such circumstances, the oil producers may force to decrease the prices of oil. However, the above argument seems to be illogical since oil is a nonrenewable energy source. Oil producing countries definitely know that people cannot avoid the use of their own vehicles for a long time and they will be forced to use it again in the future when they realize that the alternate options are inconvenient. In fact oil companies produces more oil when the oil prices increases and they produce less when the oil prices come down. They know very well that they will get higher prices in future because of the absence of other feasible energy sources. Dollar value fluctuates heavily in the global market because of the fluctuation in oil prices. According to the research findings since United States is a superpower and one of the most advanced countries in the world, most of the other countries in the world are currently associated with America in one way or other. American technology is essential for many of the other countries and there are many items exported from America to other countries. On the other hand, America’s dependence on other countries is small and therefore the bargaining power of America would be more than that of other countries.

Frank Lucas involement with the mob in the movie American Gangster Essay

Frank Lucas involement with the mob in the movie American Gangster - Essay Example And in order to achieve that, he got his 100% pure dope directly from source in Bangkok, where opium plants were also cultivated. Accordingly, he could sell this high quality dope at a lower price. He branded his own product as â€Å"Blue Magic† which became the number one brand of heroin in Harlem and other cities in the US. Frank Lucas: The "Original American Gangster† 3 Frank Lucas: The "Original American Gangster† And His Conflict with Italian Mafia 1â€Å"Ladies and gentlemen of the jury, the State will show and you will hear that Frank Lucas is the most dangerous man walking the streets of our city† - Det. Richie Roberts. Frank Lucas is one of the most successful heroin importers in US. What made Frank being successful was his unique marketing strategy. He thinks and acts like an executive officer. He realized that he could only achieve success once he breaks the monopoly of Italian Mafia held in New York. In order to do that, he went to Bangkok, Thail and and directly contracted with the supplier. As a result, he was sure to have 100% heroin and he could even distribute it at a lower price by cutting off the middlemen. Frank Lucas was then one of the most intellectual US heroin dealers who also created his own business empire, a crime organization operated in Harlem during the late 1960s and early 1970s. 1 â€Å"He's structured his organization to protect him in the same way† - Det. Richie Roberts. Frank builds his empire with family, uprooting brothers and cousins. Frank Lucas branded his very own product as â€Å"Blue Magic† which he guaranteed to be 98 – 100% pure. â€Å"Blue Magic† which has a really good quality was sold at a cheaper price compared with the other products. It eventually became famous and even hit the top of the competition, which also distressed the monopoly of Italian Mafia. This was alarming for Italian Mafia. And so Dominic Catanno from the same gang met up with Frank to talk a bout the monopoly and the other dairy farmers or the other drug dealers who were left behind the competition. And so at the end of their discussion, they had a deal that Frank will consider distributing them his very own â€Å"Blue Magic† at $50,000 per Kilo. Frank Lucas: The "Original American Gangster† 4 In the film I didn't really see too many conflicts between Frank and the Mafia except for an issue on drug monopoly. Since the Italian Mafia do not want any competition as what Dominic Cattano said â€Å"1No, I just think monopolies were made illegal in the country, Frank, 'cause nobody wants to compete, you know. Nobody wants to compete, not with a monopoly.† Just as the nature of monopoly, where there is a single distributor to eliminate competition and prices are set and manipulated. However, Frank as free and fearless as he is does not like the idea. He rather dealt with Mafia being their supplier of â€Å"Blue Magic† rather than getting into monopol y with them. My perception of Frank Lucas base on his conflict with Mafia is he is not only fearless, but he is also smart and he knows what success means and how to get it right. He has a very strong will and a strong character that also attributed to his great success. And I think, this great success still turn Mafia as his enemies in the end as the group almost killed his wife. 1â€Å"Success. It's got enemies. You can be successful and have enemies or you can be unsuccessful and have friends.†