Discussion for online Economics class Article Example | Topics and Well Written Essays - 250 words

Discussion for online Economics class - Article Example The current position of China in global economy has also contributed to the inelastic nature of its Australian mining sector. For instance, China is more concerned with economic domination rather than profits. Thus, China has vast interests in controlling the mining and energy sector, leading to the inelastic nature of mining. Unlike other commodity such as farm produce and manufactured goods, minerals are increasingly becoming scarce. This indicates that their economic value increase at a faster rate than their market value. For instance, the market price of a barrel of crude oil is much lower than its economic value. This indicates that demand for oil is not driven by the market value of the product but by its economic value. In a normal economy, a boom is followed by a bust. Currently the Pilbara Region is experiencing an economic boom and, producers are cautious about a possible economic bust. In order to protect themselves against such occurrences, production decisions are not b ased on income from mineral

Exxon Mobil Financial Report Research Paper Example | Topics and Well Written Essays - 1750 words

Exxon Mobil Financial Report - Research Paper Example The scale in which the company operates provides it with the advantage of leveraging its size into projects considered to be too capital intensive by smaller companies. This serves to reduce the amount of competition that the company faces, in a time when more companies have joined the global gas and oil industry and are making in-roads into perennial and emerging markets (ExxonMobil, n.d.). The company is fully integrated, making it able to leverage its activities in gas and oil explorations in periods when the prices of oil are advantageous. Exxon Mobil can also focus on its downstream activities when the prices of oil are low. The ability of this organization to diversify has helped it in many ways, considering the fact that the gas and oil industry is cyclical (Elliot & Elliot. J, 2008).The organization has maintained a constant average rate of growth in revenue of 7.73% from 2003 to 2012. In the year 2012, Exxon Mobil had its revenue at more than $482 billion, with earnings comi ng to $44.9 billion in the same year. The gas and oil company operates at high levels, maintaining the highest standards of safety in the industry. Evidence of this is the low number of accident incidents at the organization. In terms of returns on employed capital, Exxon Mobil is way ahead of its competitors. The company continues to reinvest in its business. Exxon Mobil has a plan to start up 31 major projects between 2012 and 2017, increasing its chances of maintaining its highly profitable status for the future. Â