Rising Oil Prices and the Scottish business Essay - 7

Rising Oil Prices and the Scottish business - Essay ExampleScotland has a very rich history, and it has played a meaning(a) role in bringing in enlightenment to the United Kingdom as modern economics was born from the lush green meadows of Scotland. Over the rate of flow of time, Scottish businesses have developed their core competencies and reached to a point where they are significantly contributing towards the economy of the country. An analysis of the Scottish business industry would bespeak that it is dominated by heavy industry such as shipbuilding, coal mining and steel industries. This stratification of the industry within the Scottish economy paint a picture that it is heavily reliant on much larger industries involved mostly into Business 2 Business kind of business transactions therefore line economic variables such as rising prices hardly have the impact on them.A recent history of oil prices suggests that they are on change magnitude constantly due to various facto rs. Many analysts believed that rising demand from China and other emerging markets such as Brazil, Russia, and India created a strong increase in prices of oil all over the world. Besides, there are antithetical seasonal patterns in production as well as consumption of oil, therefore, the oil prices pass to increase due to these seasonal patterns as well as strong demand from emerging markets. (IMF).Further, there is a growing increase into the production of pick energy sources such as ethanol which is selling at high prices, therefore, the oil prices in the market are also going to replicate that mental process because alternative products are selling at higher prices. Further, the depreciation of the dollar against major currencies such as the Euro is also considered as one of the major factors substructure the increase in oil prices.These rising oil prices, however, are being considered as a good omen for the Scottish business due to different reasons. The following section will discuss whether rising oil prices are good for Scottish businesses.