The impact of Oil price changes on the Gulf Council Countries (GCC) Dissertation

The impact of Oil toll changes on the Gulf Council Countries (GCC) line of descent merchandises - Dissertation ExampleThe author has rightly put ined that energy is one of the roughly important factors of global frugality. A country, which has enough sources of energy, can be one of the richest countries of the world. At present cover is the primary and most used sources of energy in world. Gulf countries be the major sources of inunct, so their providence is one of the strongest in the world. The changes of the world economy majorly depend on the changes of embrocate prices. When the oil price increases, thence the manufacturers around the world has to incur more(prenominal) cost in the manufacturing process. The cost of transportation also increases. Because of the step-up in the operating cost, the profit of the company decreases. A countrys economy mostly depends on the performance of the companies. When the performance of the company decreases that is the profit of the company decreases, then the economy of the country also hold up affected. The foreign investors also feel less attracted for the economy of the oil importation country. The investors feel that if they invest that contract sense of money elsewhere then they can generate more return as the efficiency of the oil importing countries have been decreased due to the oil price hike. However, it is also a fact that the present era is the era of globalization. In this era of globalization, the economy of one country has certain effect to the economy of new(prenominal) country. As the oil price hikes so, the country, which imports oil from some other country, found problem in manufacturing. They have the problem in the manufacturing of the products, which are the need of the oil exporting countries. (Aliyu, pp. 8-9). The product price go away also be high. The inflation increases and the price of the goods and services increases. The value of the currency comes down for the oil impor ting countries. For the oil exporting countries the price of goods, which they have to import from any other country increases. Though they make huge profit by exporting oil to other countries, they also have to pay more than the normal for the goods they import from the other countries. The oil price hike does not only increase inflation, only if also it affects other macro economical factors like gross domestic product, unemployment rate of the country. As the productivity of the companies decrease due to the hike of oil prices, the gross domestic product of the country also decreases (OECD, pp.5-6). As the productivity of the companies decreases, the unemployment rate also increases. If the productivity of the company decreases and the unemployment rate increases, the economy would suffer huge blow. The big(p) inflow in the market would decrease. The stock market of the countries would have less capital flow and the market indices will be down, as it was in the case of the glo bal recession of 2007-2010. In the era of globalization, when the stock market of one country depends on the performance of the performance of the stock market of some other country, then the stock market of the richest countries even get affected. This happens in case of the gulf Council Countries also. The gulf council countries are consisting of Qatar, Baharin, United Arab Emirates, Saudi Arabia, Oman and Kuwait. All are the countries from Middle East. The countries of the Middle East are one of the largest oil producing countries (International Monetary Fund, The Impact of Higher Oil Prices on the Global Economy). Though they get hit from the price hike of oil, their stock market also get affect from the events. Objective of the Project The intention of the study is to examine the effect on the