Monday, May 5, 2014

"Growth reported in Scottish businesses' oil supply work"

Date:  May 4, 2014

http://www.bbc.com/news/uk-scotland-scotland-business-27277038

This article elaborates on the fact that Scottish-based support companies are now doing the majority of their business abroad.  Specifically, "export sales from Scotland's oil and gas supply chain grew to 10 billion pounds in 2013".  This represents and increase of 22% from the previous year.  Scottish Enterprise saw a steady growth in the importance of international contracts from 2002 to to 2013, resulting in almost a 20% increase in sales.  Demand for oil and gas has grown across the globe.  The increase in Scotland's expertise over the past forty years has shown through their rise in exportation in this area.
In class we have discussed multiple examples of things that could lead to an increase or decrease in both supply and demand.   One such things is increased technology and resources.  We have also discussed imports and exports among the world.  Many countries will often import items from other countries when the supply is high, this makes it cheaper for the importing country, which would ultimately lead to the massive increase in exports sales of Scotland's oil and gas supply chain.
What led to an increase in Scotland's exports of oil and gas is most probably due to the increase in technology available to the distributors and companies.  An increase in the supply of oil in Scotland leads to the increase in demand from other countries.  The increase in exports will increase net exports, increasing Scotland's GDP.

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