Customers are wondering why prices in the EUR area are so high. One of the reasons is inflation. But that thing is not the only thing that causes rises in the prices. Another thing that affects the prices of products is the price of the cargo. And of course, how much product is offered for markets is affecting the prices.
Things like wars in the production areas are causing the rise in the prices. Things like uncertainty are also giving negative signals and that causes the loss of money. If investors are not sure about the future they can take their investments off. And start to sell certain economical area's currency. And that thing increases inflation.
Also if a certain economic area has a negative reputation because of corruption, bad human rights, or some other reasons. That thing causes inflation. The reason for that is the companies have a hard to market the products. That produced in that area. The thing is that when companies left Russia they left their merchandise behind them. And that decreases the profits.
But otherwise making business in Russia can cause boycotts for the products. So it's wise to get out of that area. Governments ordered those sanctions. That means the profit that those companies took from Russia can cause problems. And authorities can even confiscate that money. And those people who continue that business can even be prosecuted for insubordination and actions against national interest.
The thing that causes uncertainty is the Russian counter-reaction. Russia is not happy with the weapon supply to its enemy. And maybe it waits for winter. Maybe Putin thinks that closing the gas supply to Europe forces the west to its knees. The difference between Europe and Russia is that the Russian government must not care where people are living.
And do they even have warm houses? That's why the Russian government can resist sanctions longer than western governments. But the thing is that closing borders and denying money transportation are the things that are making FSB operations in Western Europe more difficult.
Things like the Ukrainian war cause there to be fewer grains for markets than usual. There is a possibility that Russians will disturb grain transportation. And that thing has already happened. That thing will increase the prices of the grain products.
Things like the price of energy, and especially the prices of fuels like gas and oil are the things. That is causing the rises in the prices of the merchandise. When electric cars are turning more common that decreases the sale of fossil fuels. And this increases the prices of the things like diesel oil.
Most oil tankers and cargo ships are using petroleum like diesel and other oil products. Also, heavy cargo vehicles are using diesel, and because sell of diesel decreases the oil company must fix their losses by increasing the price of oil products.
Because the use oil products for traffic is decreasing. That raises the price of those products also in ships and aircraft. The negative attitudes to the fossil fuels like petroleum products are decreasing the use of those products. And that thing increases the price of the cargo. Also, expensive energy causes the storage prices will increase especially if the product requires cold storage.
The new technological infrastructure requires investments in the electric network. Also finding replacing energy sources that can replace Russian gas and oil are the things that are causing the rise of the prices. Making new power sources like wind and wave energy plants. Geothermal energy plants require also investments.
Uncertainty of the continuum of the electric and fuel supply from Russia are also things. That are increasing prices. There is the possibility that Russia cuts those supplies of energy and fuel. The fact is that the rise of the temperature on Earth is alarming. And melting of the ice of the mountains is increasing the rise of the temperature. So Earth needs fast action or we are in even deeper trouble than we are today.
https://networkedinternet.blogspot.com/
Comments
Post a Comment