Increasing U.S. Oil Prices and the Economic Consequences

The increasing oil prices in the U.S are not only disturbing the local markets but also fluctuating the international markets. As a consequence, intense economical as well as political impacts are resulting both domestically as well as globally.

Globalization has changed the traditional trends of international relations as well as the conventional ideological warfare has shaped to a modern and sophisticated form. Prior to globalization, the ideological clash was based on ideologies like communism, totalitarianism, capitalism and fascism. However, presently the ideological concerns are more intense along the traditional concepts, as states are now more intensely involved into technological development and economic development. At the same time, the traditional concept of power has changed with the emergence of globalization. Now power means to be equally developed in economic, political, technological and social areas domestically as well as possess a very strong potential to conduct an influential role in international relations.

Globalization basically means privatization, free market economy, trade liberalization while bridging the communication gap among states all over the world. However, globalization is now leading to regionalism, as states are more concerned to regional economic integration to strengthen their economies.

Therefore, the world is now like a global village where every country is affected by the policies of other states at the same time the domestic policies are not unaffected. However, the world is much more affected by the economic as well as technological and political policies of America as it is the super power. For instance, the fluctuation of the U.S oil prices not only disturbs the local market of America but also the global market. Lets have a brief analysis of the impact of the U.S oil prices on the domestic as well as global market.

U.S. Oil Prices: Effect On Local Market