Research Paper Prospectus on the Economic and Financial Impact of the Proposal

Paper Prospectus on the Economic and Financial Impact of the Gulf Oil Spil - Research Proposal Example The world’s most sophisticated drill rigs, known as The Deepwater Horizon, was degraded to a mass of burnt metal in a split of seconds (Peppas, 2011). The rising demand for oil over the years meant that companies were drilling even deeper into the sea in an attempt to drill more oil. The oil spill occurred at a time when the industry was least expecting it; industry experts has speculated that the chance of an explosion was less than one percent (McCoy & Salerno, 2011). However, the incident painted an entirely different picture; thousands of individuals were cleaning up the oil spill, with thousands of devices screening the blowout. Discoverer Enterprise, the drill ship, howled loudly as it vent out methane gas that shot from the runway well (Peppas, 2011). Another rig, Q4, 000 which burnt oil and gas, simultaneously exploded (Peppas, 2011). What made matters worse was that the waters of the gulf were very difficult to reach; the terrain is very rough marked by canyons, ridge s and volcanoes (Farrell, 2011). The deposits lay buried under the salt ridges under the sea that were vulnerable to earthquakes. Furthermore, the temperatures underwater were freezing whereas the temperature of oil reservoirs was around 400 degrees (Upton, 2011). Economic concepts/approaches to be used in the research The economic concepts/ approaches to be involved are as follows: The concept of negative externalities: This concept explains the impact of individuals and/or corporations on a third-party (Hackett & Moore, 2011). They can be negative or positive; however, in this situation the externalities are likely to be negative rather than positive. Negative externalities shall revolve around the following : Damage to marine life Damage to local fishermen Damage to the coastal area’s economy Damage to U.S’s exports Damage to locals who inhale the toxic fumes Damage to individuals who consume the contaminated seafood Cost Benefit analysis of the clean up: This conce pt shall arise when the company involved decides to arrange for a cleanup of the oil spill as well as compensate the families of the deceased or affected people. BP shall have to weigh the private versus social costs and benefits associated with the remedies it take which shall be explored in the main research. As economic theory suggests the decision that BP takes may not be socially desirable because of corporations’ self-interest and focus on maximizing private net benefits rather than maximizing social net benefits (Ramseur & Ramseur, 2010). Expected findings/outcomes The findings expected are: Increasing unemployment- What shall be the impact on businesses whose earnings were tied to the Gulf of Mexico? Increasing government deficits in the region- What shall be the impact on fishermen who no longer have a source of income? Increase in national deficit- The deficit is expected to exceeding $2 million (Landau, 2011) Inflation in prices of agricultural products Higher taxe s- Politicians can use this opportunity to charge higher taxes on an already troubled population Ecological damage to Louisiana coast Damage to marine life- Oil has swept deep into the sand which is the breeding ground for most fruits and vegetables. If the oil isn’t cleaned up it can lead to intoxicated vegetables and fruits that can contaminate human life. Also toxic fumes have penetrated deep into the sea bed that can harm marine life, including fishes, disturbing their entire ecological system

Reverse Logistics Operations in the Ford Motor Co Research Paper

Reverse Logistics Operations in the Ford Motor Co - Research Paper Example Ford has always been credited with the manufacturing invention. Scone its founding in the late 19th century, the firms has been in the forefront of defining mass production. The founder of Ford, Henry Ford is credited to have been the inventor of the assembly line. With its over a hundred years in manufacturing automobiles and auto parts, Ford has come to know the importance of having a smooth supply chain and the logistics that goes into sustaining this supply chain. It is not just its supply chain; it is also about its reverse logistics which refers to the products or parts travelling backwards from the normal direction of the supply chain to the manufacturer. Reverse logistics has a impact on a business. For instance, some finished products may reach the market but have a default, the reverse logistics that are required to return these products to the factory for the correction of the fault are always important. Ford realizes that there is a need to carefully and efficiently manage these reverse logistics. No matter what, the reverse logistics associated with the return of faulty products are an expense to any firms (Davis, 2012). Automobile manufacturers stand to incur an even bigger loss with such reverse logistics. Many auto manufacturers have in the past found themselves in the situation where they need to reverse the logistics for a large number of logistics. For instance, the Japanese auto manufacturer has in the past needed to recall millions of cars after they have reached the market and a major fault is detected. For instance, there has been one of the cars from Toyota that had a fault with its acceleration and the fault had to be corrected back at their factories. Such reverse logistics cost the firm a lot of millions. Ford realizes that such reverse logistics need to be managed in a serious way and should not be treated as a secondary logistics. They realize that