For the economy as a whole, demand pulled inflation refers to the price increases which results from an excess of demand over supply. It is a form of inflation and categorized by the four parts (households, businesses, governments and foreign buyers). When these parts want to purchase greater output than the economy can produce and we need more cash to buy the same amount of goods as before and the value of money falls, so they have to compete in order to purchase limited amounts of products and services. Generally, the demand-pulled inflation result from any factor that increases aggregate demand. Also, an increase in export and two factors controlled by the government are increases in the quantity of money and increases in government purchases
It does so by managing the interest rate. Inflation is defined as a persistent increase in the average price level in the economy, usually measured through the calculation of a consumer price index (CPI). High interest rates will affect both investment and consumption, which will affect the aggregate
The oil price increase may affect the economy activity, especially in the increase in the cost of production of goods and services, which in turn may influence the inflation rate, consumer confidence, and financial markets. Inflation happen will be transposed to consumer which eventually reduce their purchasing power and investment. During oil crisis in 1973-1974, a decline of stock prices is interpreted by the increase in oil prices and it indicate that oil price change may lead to stock market returns volatility (Bina & Vo, 2007). Crude oil price is the primary fuel of industrial activities and plays a significant role in shaping the economic and political development of the countries, not only by directly influencing the aggregate indicator but also by affecting the companies’ operational costs and its revenue. When the stock market is efficient, positive crude oil price shocks would adversely impact the companies’ cash flows and market values, lead to immediate decline in the overall stock market returns (Hamilton, 1983).
Cost Push Theory Cost push theory is where inflation is due to direct result of increase in the cost of production that is increase in prices of raw materials, increase in labour cost (wages & salaries). Cost push inflation can be also defined as prices have been “pushed up’ due to increase in price for factors of production. So as the cost push theory says inflation is caused by increase in cost of production factors, this leads to decrease in the demand for raw materials, which leads to decrease in production and demand stays consistent, than this leads to increase in price (inflation). The figure 1.0 shows what happens in the cost push theory. If the firm is operating at point Q1, P1 any increase in price for factors of production will lead to increase in price that is moving from point P1 to P2 quantity supplied decreases due to increase in cost for factors of production moving from Q1 to Q2.
SWOT ANALYSIS It is an instrument used to have a superior comprehension of the Sime Darby’s business. By having a better comprehension of the variable that influence the business, it helps the company to anticipate the trends and build up a strategy to accomplish the objectives. Strength The world’s largest listed oil palm plantations In Malaysia, Sime Darby is the largest listed plantation company. It can create around 2.47 million tons which is 5% from the world’s crude oil every year. The palm oil has many uses so the plantation area is fit for accomplishing high profit with suitable methodology.
Introduction: Several environmentalists have agreed that the increasing population is one of many interacting factors that place pressure on the environment. The growing population is especially responsible for all environmental impacts. Increase in population leads to high level of consumption and industrialization, inequality, land distribution, unemployment, poverty and inefficient technologies which contribute directly and indirectly to the declination of nature (Human population, 2017). As population growth slow down, the countries can invest more in education, health care, job creation, and other improvements that help boost living standards. In turn, as individual income, savings, and investment rise, more resources become available that can boost productivity.
THE GLOBAL SCENARIO…………………………………………………………………… According to Hilot (2014), a multitude of individuals worldwide relies on the coconut tree as a source of income. Coconut based products has widely occupied the world market despite the penetration of other edible oils from palm and soy bean. Aside from that, worldwide inventors had amplified the medical benefits of coconut through research and development, thus increasing its demand. The coconut tree is cultivated in more than 93 countries all over the world. 75% of the global production is from Indonesia, India and the Philippines.
By progress of wealth, he meant economic development which could be achieved by increasing the wealth of the country. The wealth of the country depends partly upon the quantity of produce obtained by its labour, and partly upon the valuation of this product. But, “wealth of the country does not always increase in proportion to the increase in value, because an increase in value may sometimes take place under an actual diminution of commodities”. Population increases in a geometrical ratio whereas food supply increases in an arithmetic ratio. This disharmony will lead to wide spread of poverty and starvation which would only be checked by natural occurrences such s disease, high infant mortality, famine, war or moral restraint.