Business Economics Influential Factors

Question: Discuss the factors that influence the supply and demand of the products of BHP Billiton. Answer: This study has highlighted the influential factors, which has been highlighted the supply and demand of the products of BHP Billiton. In this context, it can be stated that if the demand for the oil has been decreased, then the oversupply of oil in the market will arise. As a result, the price of the goods will be decreased. On the other hand, it can be stated that if the currency exchange rate fluctuate, then the supply and demand of oil will be changed. According to Gillespie (2013), the business of BHP Billiton is reflected by the varieties of currencies and also due to the geographical position of the oil production. This in turn affects the currency exchange rate and therefore the financial performance of BHP Billiton fluctuates. In this purpose, it can be stated that if the value of the dollar becomes weaker, then the adverse affect negatively influence the demand and supply of oil of BHP Billiton. As per the statement of Gillespie (2013), it can be seen that customers observe that increase in the price of oil may arise due to the shortage of supply. Moreover, in this connection it can be mentioned that due to the natural disasters and calamities increase the price of oil. On the contrary, the demand for the product was remaining same. On the other hand, it can be identified that emission of the carbon gases directly enhances demand for the oil of BHP Billiton (BBC News. 2016). References BBC News. (2016).BHP Billiton sinks to $5.67bn loss - BBC News. Available at: https://www.bbc.com/news/business-35635825 [Accessed on 27 Sep. 2016]. Gillespie, A., 2013.Business economics. Oxford University Press.