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How does high oil price impact our economy ?

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Question added by Gopinath Ramkumar , Lead Quantitative Manager , Hsbc Securities Services
Date Posted: 2015/08/08
Tilahun Ayele
by Tilahun Ayele , Finance and Administration officer , BETEK CONSTRUCTION PLC

It affects our economy in that, since almost all machines like cars, factory machines and the likes used these oils as a means of source of energy i.e. an important input for production. hence, the higher the price of factors of production, the higher becomes the cost of production which is directly responsible for expensive products which intern affects the poor, the mass! 

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