Question

What would be a problem statement for fluctuating fuel prices and it affect on the growth of capitalism? What data would be required to address the problem statement? How would you approach the data analysis and evaluate the results?

Answer 1

Capitalism is one of the key factors that has contributed in the growth of the world economics that we today know. Most countries today see dominance of capital and private enterprises and the goals of governments has been restricted to law making only.

However, rising fuel prices indeed have a problem here. Countries with relatively lower development have often controlled the prices of fuel in their own hands so as to subsidize the same as they have great impact on the overall price levels within a country.

The prices of fuel in a country greatly impact, the growth of capitalism since those countries which do not produce oil or are developing or underdeveloped largely control the prices of fuel within the country and thus have an impact on capitalism in the country,

To address the problem, we would have to look at the data and trend over a period of time, and relate this with the growth rates and the inflation rates in the country. Further, more than the direct impacts of capitalism which have been illustrated above, the indirect ones are such that since the profits of the organization decline, companies do not invest in the countries.

A comparative analysis of the fuel prices and the growth in various industries would help us in knowing the impact of fuel prices on the industry and as a country as a whole. During times when fuel prices per barrel have increased, their relative impact on investment patterns will give us a clear reflection on how they affect the growth of capitalism in the industry.

Trend analysis will help us in giving a correlation among investment and increased prices which then can be used to draw conclusions.

Thus the data set required is the year on year growth and investment pattern as compared to the times of increase and decrease in oil prices and correlation and regression can be used to analyses the impact.

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