What is your government doing to help people cope with higher oil prices? How have increases in the

Marvelous composition, Sir [이름].

Impressive! There are really pros and cons of this situation.

We should be knowledgeable about it.

Thank you so much for sharing this.

I was able to understand it better. ^_^

Have a great day,

Teacher Nina

The biggest issue these days is plunged oil prices.

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Oil price is sharply declining and this trend will continue for a time being.

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Is it bad or good?

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Countries like Korea which is heavily dependent on the export driven economy and buy oils from oil producing countries to produce goods will benefit it because of the low production cost, however, the effect will be temporary.

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>> Countries like Korea which is heavily dependent on the export driven economy and purchase oils from oil producing countries to produce goods will benefit  from it because of the low production cost. However, the effect will only be temporary.

The drop of oil price could be caused by two reasons: low demand and excessive supply.

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Low demand for oil indicates that the global economy is contracting and customers’ purchase power will be weakened so that companies will suffer from poor sales.

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In addition, oil producing countries which economy entirely relies on selling oils will be severely affected.

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When their revenue decreases, they won’t invest, neither import goods as they’ve done.

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It leads to the recession of the global economy.

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The vicious cycle will continue in that way.

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The surged oil price is also a problem because it causes higher living expenses.

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