What actions might be taken by the government of your Uk to reduce or Essay

What actions might be taken by the government of your Uk to reduce or limit price fluctuations of oil - Essay Example The U.K. together with other many other countries have suffered from the fluctuation of oil prices in the international market as OPEC manipulates the prices (Keohane 1984). The fluctuation of petroleum prices in the U.K. is mainly affected by the fluctuation of crude oil prices in the international market which in turn is affected by the levels of supply relative to the expected and actual demand for the commodity. In this respect, the U.K. can control price fluctuations by mainly playing around with the demand and supply of the commodity and reducing overall dependence on oil (U.S. Department of Energy 2015; Yan 2012) as will be discussed in the following sections. There are a number of measures that the U.K. government can take to limit or reduce the fluctuation of oil prices which grossly affects the nation’s economy. One way through which the a country can reduce the fluctuation of oil prices is by taking measures to reduce the consumption of petroleum (Ji and Song 2009). By ensuring the production of machines and equipment that are more fuel efficient, for example, the U.K. would end up with a lower demand for oil. Furthermore, the demand for oil can be reduced by asking nationals or making legislations to ensure that the consumption of oil by households, businesses, and industry reduce. Yet another means through which the U.K. government can control oil price fluctuations is by increasing the supply of oil. When the supply of oil in the country is increased and the demand for the commodity is held relatively constant, the price of the commodity will tend to reduce and stabilize at some point, holding other factors constant. This being the case, the U.K. can opt to drill more oil wells, somehow increase the output of its fields, or reduce its oil exports to other countries. Closely related to altering the demand for a commodity is using substitutes. There are several substitutes that can be

The Basic Function Of Strategic Management Accounting Essay

The Basic Function Of Strategic Management Accounting - Essay Example In terms of capital investment decisions, Tesco Plc should set up more grocery outlets in other communities. Based on prior feasibility studies done on a prospective new location, Tesco will use both investor funds (retained earnings reserved for branch expansions), and long-term borrowings to finance another big Tesco grocery outlet. In terms of the evaluation of multidivisional companies, Tesco Plc should conduct classify each multi-divisional company as cost and revenue centers. Each company will generate its own financial statements. Thus, the financial statements will indicate the number of a multi-divisional company under Tesco Plc that generates profits. Likewise, the same financial statements will vividly indicate the number of multi-divisional companies generating net losses (Garrison, 2003). The strategic management accounting system of Tesco Plc focuses on ascertaining if the company’s final reports conform to international accounting standards.The strategic managem ent accountant of Tesco is a driving force to develop a global accounting system is the desire to underwrite securities in any, or all, of the world's capital markets using a single set of financial statements. Currently, the Tesco Stocks are listed in the stock exchanges. A positive incentive for a capital market to support a global accounting system is the enhancement of its volume of business by being able to participate in underwritings in other capital markets.   Reinforcing the positive incentive is the realization that a capital market, which ignores the development of a global accounting system, may find itself with a unique set of accounting standards while the rest of the world relies on a common set of accounting standards. This would lead to an irretrievable loss of business (Brigham & Houston, 2002). Heely (1993;25) emphasized â€Å"the globalization of corporate activity, coupled with