I would like to obtain some information on the incresae in oil prices
and the effect which this increase has on our economy on a
(INTERNATIONAL LEVEL). I would like to know what sectors of the
economy this effects and the implications which arise from this issue.

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Clarification of Question by yasakmal-ga on 03 Nov 2005 18:22 PST

yes to a certain extend. But my question was how does it effect
International business.

Let us take the case of USA.

It's oil consumption is about 20 Million Barrels per day. Before Bush
took over, Oil used to cost about USD 25 per barrel. Now it costs USD
50 per Barrel. The increase is 25 USD per barrel on a volume of 20
Million Barrels per day i.e. USD 500 Million per day i.e. USD 182
Billion per year. Oil marketing companies, producers (Bush's loyal
Saudi friends will benefit due to the high prices whether or not they
supply oil to USA) and brokers will pocket this money (a portion will
go to US Govt. too as taxes) which will have to be paid for by
American people. The Govt. spends the additional income on Iraq war
expenses which will be pocketed by companies like Halliburton which
will flow to former executives like Cheney and hidden interests
(Bush's family ?). The effect on GDP of 10,500 Billion USD is about
1.8% which will be the increase.

Now let us talk of the poorer countries which do not produce much oil.
Let us talk of India. Its consumption is 2 Million barrels per day. So
additional cost is 18.2 Billion USD per year. It has a GDP of 600
Billion USD per year and so the effect is a little over 3%.

The loss is for average American who contributes to the growth of rich
companies and rich individuals. The gain is for the rich families who
will become richer. Bush, Cheney, Rice etc. have a huge relationship
with oil companies and hence this situation.

Hope I have clarified.

yes to a certain extent. But my question was how does it effect
International Business?