The paper "International Markets: Currency Wars and the Trans-Pacific Partnership" is a perfect example of a marketing case study. Industrialised nations pride themselves with the capacity to have, and control large multinational businesses that contribute greatly to the global economy. Moreover, these nations have access to extremely important natural resources that also play a crucial part in global enterprises. Crude oil is such an important natural resource in the highly developed countries; it runs their economies in various ways. From driving machines, fueling vehicles and aeroplanes to industrial use, crude oil plays a crucial part in the running of global enterprises and economies.
Despite the significance of oil in the international markets, it is worth noting that its price has been unstable over the years. The instability of oil prices has affected international businesses greatly. Dan Murtaugh and Javier Blas from Bloomberg reported on the 18th of January, 2016 that it was alarming that the North Dakota crude oil was plummeting. The report stated that oil was in plenty in the US, and it was cheap. The fact that there is plenty of oil in the US means that the price of the precious commodity will continue to go down (Murtaugh and Blas, 2016).
In 2014, the price of oil in the US was $47.60 per barrel; in 2015 it was $ 13.50. The price has gone further down in 2016, with Flint Hills Resources LLC offering to pay $1.50 a barrel for North Dakota Sour (Murtaugh and Blas, 2016). Indeed, the price of oil has been unstable as evidenced by the slump over the past three years. This shows that things are not good in the oil industry in the US.
The most valuable natural resource is fetching almost nothing compared to its economic potential. According to Murtaugh and Blas (2016), the past 18 months have seen the US benchmark oil prices go down by up to 70%. For the first time in 12 years, the price of oil has fallen below $30 per barrel. This is an indication that the industry has had a dismal performance so far. The low prices being experienced in the US simply means that producers could soon shut their wells.
From a critical analysis, it is evident that the different grades of oil are priced according to the prevailing economic factors in the domestic and international markets. It is not only oil producers in the US who are being pained by the circumstances surrounding the oil industry, but also producers from other countries. In the third week of January 2016, the price of Canadian bitumen was $8.35 (Murtaugh and Blas, 2016). This was a great decline compared to its pricing at $80 in the last two years (Murtaugh and Blas, 2016).
An analysis of these trends shows that oil producers are becoming less motivated, and ultimately both the domestic and international markets will be greatly affected. As the price of oil continues to take unexpected shifts every now and then, countries are engaged in currency wars with the aim of stabilising the economies. The instability in the oil industry is just an indication of how international markets operate. Currency wars and international trade agreements are a constant reminder of the ever-increasing competitiveness in the international markets.
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