Rising Oil Prices and the Scottish business Essay - 7

Rising Oil Prices and the Scottish business - Essay Example Scotland has a very rich history, and it has played a significant role in bringing in enlightenment to the United Kingdom as modern economics was born from the lush green meadows of Scotland. Over the period 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 suggest that it is dominated by heavy industry such as shipbuilding, coal mining and steel industries. This stratification of the industry within the Scottish economy suggest that it is heavily reliant on much larger industries involved mostly into Business 2 Business kind of business transactions therefore key economic variables such as rising prices hardly have the impact on them.  A recent history of oil prices suggests that they are on increasing constantly due to various factors. Many analysts believed that rising demand from China and other emerging marke ts such as Brazil, Russia, and India created a strong increase in prices of oil all over the world. Besides, there are different seasonal patterns in production as well as consumption of oil, therefore, the oil prices tend 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 alternative energy sources such as ethanol which is selling at high prices, therefore, the oil prices in the market are also going to replicate that 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 behind 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.