I recently read that the increase in gas prices can in part be attributed to the growth of the Chinese economy. What is the correlation here...??
2007-05-23 15:23:47 · 10 answers · asked by ANDREA M 2 in Social Science ➔ Economics
China has developed a tremendous appetite for oil due to its booming economy and tremendous population. Their tremendous DEMAND reduces worldwide SUPPLY thus driving prices up worldwide. The same could be said for the US that we cause price increases in smaller impoverished countries.
2007-05-23 15:28:42 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I just got back from China. There are about ten times as many cars on the road as there were three years ago. Bridges, buildings etc. going up all over the place. Since oil is globally traded, they are now a giant customer. Supply and demand. More demand and less supply creates a price inflation.
2007-05-23 15:32:30 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The better the Chinese economy, the more gas they use. The more gas they use the more pressure on the price of gas and the price goes up.
2007-05-23 15:35:32 · answer #3 · answered by Clown Knows 7 · 0⤊ 0⤋
it is the law of supply and demand in operation the Chinese now that they have become an economic power are in direct competition with the USA for oil as well as other countries and so the price will continue to rise
2007-05-23 16:14:33 · answer #4 · answered by billc4u 7 · 0⤊ 0⤋
Since the population is growing in China everyday, there are more ppl who are using cars, and using more gas as a result. Therefore, there is high deman n less supply, so the prices increase.
2007-05-23 16:11:58 · answer #5 · answered by Lovemylifefriendsfamily 4 · 0⤊ 0⤋
It is because with the growing Chinese economy, their demand for fuel increases, leading to a higher demand, which results in higher prices for crude oil.
doc
2007-05-23 15:29:18 · answer #6 · answered by Doc Hudson 7 · 0⤊ 0⤋
this is nice yet do not get excited because the arabs are going to scale back a million.5 million barrels an afternoon starting up Nov a million and in the present day they are eliminating each and every of the former summer season gasoline that become made and making waiting to make wintry climate gasoline with the elements in it, the gasoline will stay this way till after the elections and then commence mountain climbing back and could top out back next summer season.
2016-10-18 10:00:34 · answer #7 · answered by ? 4 · 0⤊ 0⤋
As others have explained, fossil fuels are linked to economic growth. Kind of sad isn't it?
I wish there was another way.
But anywho, currently, industry is a huge part of an economy, and you can't do much without energy. and oil is a huge source of that energy.
2007-05-23 17:24:49 · answer #8 · answered by ccguy04 2 · 0⤊ 0⤋
USA has to share with China
2007-05-23 15:31:31 · answer #9 · answered by Jn 3 · 1⤊ 1⤋
they buy up all the oil!!!!
2007-05-23 15:32:01 · answer #10 · answered by Anonymous · 0⤊ 0⤋