Essay --

Impact of crude oil termss on world economy1.increase financial indebtedness of oil importing nations due to constant rise in oil pricesOil importing countries budget primarily comprise of oil cost which increases the indebtedness of these countries towards oil producing nations. The prolonged indebtedness may give rise to insolvency of these counties in long term. 2.Increase in oil price has a convey impact on both micro- and macro economics of oil importing countries. Oil price increases are generally linked to increase in ostentation and reduce economic growth. Increase in oil prices increases the cost of supply chain. This causes the inward shift in aggregate supply curve and hence the price level goes up. The fluctuations in oil price leads to speculation in the market. This is also a major reason for short term price rise of the commodities in a country. Apart from the direct impact, the indirect impact could be the price rise of commodities which use oil as their input in some signifier or other.Increasing oil prices in oil consuming nations reduces the purchasing power an...