Business Overview of Amway Essay Example | Topics and Well Written Essays - 1250 words

Business Overview of Amway - Essay Example This has been a prudent approach in business as it has enhanced its performance all over the world (Jones 23). Apparently, the company has been recording a positive growth over the last seven years. In the recent reported sales, it was declared that the company made sales amounting to over 11 billion USD. This shows that it is a company that is on the helm of attaining greater performance. According to Forbes, the company was ranked as one of the largest private companies in the United States clinching number 25 in 2012. Similarly, Deloitte ranked it number 114 among the largest global retailers in the year 2006. Market Advantages. Amway is a company that has been appreciating a larger market share with each passing year. This poses an advantage to the company as it accrues greater sales. This is a market advantage for the company as it increases its sales (Deangelo 12). Due to globalization, the company has spread its company affiliations in many other countries. This is an added ad vantage as it gets greater demand for its products. For instance, the company has spread its market share in over 100 countries and territories in the world. This creates a substantial demand for its products since there are many people that will create a demand for the products in all these countries. Similarly, the approach of using other companies to sell its products has been to the advantage, since it has many retailers and outlets (LLC Books 13). This creates a large supply chain of the products all over the market. As such, the company continues to make greater sales, which is an advantage over other retailers in the market. Amway is a company that has substantial amounts of capital for investments, mergers and takeovers. As such, it has the resources that are needed to extend its market share. This has made it possible for the company to make international expansion. This poses an advantage to the company as it increases the demand market for its products. When there is suff icient capital, the business makes initiatives of investing in providing other products that enhance its performance. Similarly, the company has a vital resource which is labor (Jones 32). It has more than 20, 000 employees who are vital in fostering development. With such a large number of employees, the company is likely to make a positive accrual in its business. This is due to the efficient and sufficient labor that is available. This states the reason why the business has been marking an improving in a seven year streak. Amway is headed by a competent management team. The performance of a company is dependent on the management team. Therefore, a company that has a competent management team is likely to make greater performance in the market. This is one of the strategies that are used by Amway (LLC Books 11). Through the leadership of Andel and Devos, the company has been able to incorporate a perfect management team that deals with its operations. As such, the company has been making positive performance and an improvement over time. Similarly, it has its headquarters in Michigan, which is a strategic place. This makes operations easier as the company focuses more on making an improvement. Branding. A business is determined by the performance of its brands in the market. Strong brands in the market reflect a positive accrual to a business as they attract a larger market niche. To begin with, Amway has a number of well performing brands in the m

The Unconventional Depiction of Women in Japanese Films Essay

The Unconventional Depiction of Women in Japanese Films - Essay Example Women, as portrayed in Japanese films are meek and a follower of men. They are the guardians of the house and children and the helper of men, they are the ones that fall in the background but very much important nonetheless. Men are driven by pride; they would do things that are out of their league for the sake of containing and maintaining their pride, their ego, their dignity. Men are depicted as great thinkers and they invent something new every day and by nature they are competitive and easily driven by a desire for power and glory, whether it is for a higher rank or for the love of someone, even love becomes a game, even life or freedom will be put at stake just to prove that they are better than someone else, they like to gamble and they rarely think of the outcome before they do crazy stunts and acts recklessly. They like the thrills and the element of danger and adventure, a male figure will grow in his appearance and expand his understanding but in spirit, he remains a boy who likes challenges and unbelievable stunts and plot to make it better than it was before. They do not easily accept defeat and they do not easily give in and in fact, most of the time, not at all. Although women are devious in ways a man will never understand, they are the keepers of the house and will be as gentle as an angel even when angered or wronged but they unleash a fury greater than hell when forced to it. Most women think of not just of herself but the whole package, of the people around her and of what an action may cause to the generalized public.... Men are depicted as great thinkers and they invent something new everyday and by nature they are competitive and easily driven for a desire of power and glory, whether it is for a higher rank or for the love of someone, even love becomes a game, even life or freedom will be put at stake just to prove that they are better than someone else, they like to gamble and they rarely think of the outcome before they do crazy stunts and acts recklessly. They like the thrills and the element of danger and adventure, a male figure will grow in his appearance and expand his understanding but in spirit he remains a boy who likes challenges and unbelievable stunts and plot to make it better than it was before. They do not easily accept defeat and they do not easily give in and in fact, most of the time, not at all. Although women are devious in ways a man will never understand, they are the keepers of the house and will be as gentle as an angel even when angered or wronged but the unleash a fury greater than hell when forced to it. Most women think of not just of herself but the whole package, of the people around her and of what an action ma cause to the generalized public but women are just as human as a man and therefore are not an exception to crime and they also has faults and they also commit devious crimes but this population is at least just 20% of the total, unlike with men who are more exposed to the brutal reality of having power in the society. Women are more likely to be the victim of a crime than a man, women are not born weak but they are being dominated over by men and since women believes in love more than men does. Since women are the

Prisoner's Dilemma Research Paper Example | Topics and Well Written Essays - 500 words

Prisoner's Dilemma - Research Paper Example In the prisoners dilemma game I was stuck in jail with Lucifer. We were in separated cells. In a prisoner dilemma game there is no way for the prisoner’s to coordinate their actions (Varian). The two options in the game are to cooperate or defect. Cooperate implies to cooperate with each other by denying the crime. Defect means to talk to the police and tell on each other. The first strategy that I choose was to cooperate. I was sure that Lucifer would do the same. Lucifer did not follow my lead and defected. The implication of this strategy was that I was going to jail and Lucifer was going to go free. I decided to run the simulation once again to implement a different strategy. During the second simulation run I decided to cooperate once again. Lucifer cooperated with me. The game was run 13 times and Lucifer kept cooperating. The final outcome was mutual cooperation the best potential outcome for both parties. Under this scenario we both received jail time but at a reduced sentence. I decided to try the simulation a third time to try a different strategy. The third strategy I used was to be a traitor and implement a pure defect strategy. Lucifer became the sucker in the game. My won the game with a final score of 78-13. The strategy that I used was risky in real prisoner dilemma game because if both parties defected we both get the maximum jail time.

Project Part 2 Research Paper Example | Topics and Well Written Essays - 1250 words

Project Part 2 - Research Paper Example The unique design of the product means that the competition from other traditional local products in Kenya will not affect it. Kimono has an appeal to people of different age-groups. More recent kimonos cloths are of simple designs and cheap. Therefore, the poor people from all part of the country are in a position to afford kimono cloths. However, there are also expensive designs which are ideal for the rich people. Kimono also incorporates fashion in coming up with their design. For instance, young women are mostly attracted to kimono cloths because of their fashionable and appealing look. Moreover, due to the flexibility of its designs, they can be made to fit different cultural believes and practices of the various groups and communities in the country. This plays a very important role in identifying and distinguishing the different cultures (Kotler& Armstrong, 2013). Kimono also recycles its materials to produce the recycled kimono cloths. This is rare clothing that is unique and beautiful and very ideal for women aged between forty and sixty years. The element of recycling is beneficial to those whose kimono clothes would have become old, worn out and tarnished. It is, therefore, cheap and convenient considering the recycled materials can be taken back to the tailors to make other clothes, thus, saving money that would have been used in purchasing new cultural clothes at a higher cost. For example, Yukata, product of kimono, popular for the people who love casual wear. It is made from linen, or cotton or polyester which is dries quickly. This makes Yukata an ideal to be worn during the summer period because of its comfort even in worn climates. However, in order to fit in the Kenyan market, kimono will have to make a few changes in their ultimate designs. The changes would be done in a manner that will depict the various cultural practices of the different communities. There are 42 ethnic communities in

SFAS 116 and SFAS 117 Essay Example for Free

SFAS 116 and SFAS 117 Essay SFAS 116 and SFAS 117 were created to improve accountability among not-for-profit and government entities. These improvements should simplify the structure of financial statements by making them understandable to both the financial and non-financial audience. SFAS 116 establishes the accounting standards for contributions made and received. All entities that make or receive contributions are required to report the contributions received at fair market value as revenue in the period in which they were received. Likewise, any contributions made must be recognized at fair market value but as expenses in the period in which they were made. It further requires that not-for-profit organizations classify contributions that increase net assets as either permanently restricted, temporarily restricted, or unrestricted (FASB, 1993). SFAS 117 concentrates on the external financial statements for not-for-profit organizations. The purpose is to enhance the relevance, understandability, and comparability of financial statements issued by those organizations (FASB, 1993) and requires that all not-for-profit organizations provide a statement of financial position, statement of activities, and statement of cash flows (FASB, 1993). NFPs are required to report net assets broken down as permanently restricted, temporarily restricted, or unrestricted in the statement of financial position. The amounts of change for each classification also must be broken down in the statement of activities. The statement of cash flows must also now contain donor-restricted cash that is used for long-term purposes as being derived from financing activities. Any welfare and voluntary health organizations must report on the statement of functional expenses the function and natural classifications of those expenses (FASB, 1993). All not-for-profit and government organizations must follow these statements. While the individual accounting processes may be complicated, they will help to promote financial accountability and  transparency within those organizations. References FASB. (1993, June). Statement of financial accounting standards no. 116. Retrieved from http://www.fasb.org/cs/BlobServer?blobkey=idblobwhere=1175820922799blobheader=application%2Fpdfblobcol=urldatablobtable=MungoBlobs FASB. (1993, June). Statement of financial accounting standards no. 117. Retrieved from http://www.fasb.org/cs/BlobServer?blobkey=idblobwhere=1175820923228blobheader=application%2Fpdfblobcol=urldatablobtable=MungoBlobs CERTIFICATE OF ORIGINALITY I certify that the attached paper is my original work. I am familiar with, and acknowledge my responsibilities which are part of, the University of Phoenix Student Code of Academic Integrity. I affirm that any section of the paper which has been submitted previously is attributed and cited as such, and that this paper has not been submitted by anyone else. I have identified the sources of all information whether quoted verbatim or paraphrased, all images, and all quotations with citations and reference listings. Along with citations and reference listings, I have used quotation marks to identify quotations of fewer than 40 words and have used block indentation for quotations of 40 or more words. Nothing in this assignment violates copyright, trademark, or other intellectual property laws. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my handwritten signature.

Shakespeares Macbeth Essay Example for Free

Shakespeares Macbeth Essay In Shakespeares Macbeth, which character or characters bear most responsibility for the death of Duncan? Discuss. Shakespeares drama Macbeth was first performed in 1603 and appears to celebrate the accession to the English throne of King James I, who was believed to be the descendant of one of the plays characters, Banquo. The plot originates from the ancient Scottish story of King Macbeth of Scotland. Macbeth is the Thane of Glamis, and holds the position of general in the kings army. He is tempted with the prospect of becoming king himself by three witches he meets on a heath. This creates an internal moral dilemma which is exacerbated after he writes to his wife, informing her of his experiences. This compels her to exert pressure upon him, and give orders and ultimatums; and so on the surface Macbeth appears to be a victim of external forces. With this in mind I intend to examine these characters in turn to see who bears the greatest blame for the death of King Duncan. This play was intended for King James Is attention. We know this through the use of Scotland, James homeland, as a backdrop to the story and the characterisation of his ancestor, Banquo. The characters of the three weird sisters are intended as a reference to King James obsession with witches and witchcraft. In his treatise Daemonologie (1597) he wrote of them as demonic supernatural beings who served a purpose as tempters. According to him, their purpose was the damnation of their victims soul. Their role as tempters in the play relates to James belief that God may test people, even the best (God will permit so to be tempted or troubled), and this demonstrates that the witches motives for targeting Macbeth was not merely a cruel trick but may be seen as part of a greater design in which he is to be tested by God. This demonstrates that even a hero must be subjected to temptation (and euen some of the best, that their patience may bee tryed before the world). Though the witches are malevolent, they could possibly be instruments of God (rather than the Devil as suggested in Act 3 Scene 5, where the character of Hecate comes to direct the witches; however, this character is probably a later interpolation by another writer, as the Folio was printed seven years after Shakespeares death). Macbeths subsequent failing through succumbing to temptation and killing Duncan is not the fault of God nor the witches, but himself. This illustrates the ubiquitous nature of temptation, and shows that all people are plagued with their own demons of desire; however these demons cannot be blamed for leading their victims astray because the responsibility lies with the person who chooses not to resist temptation. We must deal with the possibility that the witches possessed Macbeth, and that he may not be responsible for his actions. The frequent use of the word rapt, which comes from rapture, suggests the transportation of the soul. This is seen in the play when Banquo comments on Macbeths appearance upon being told he is to be the new thane of Cawdor; (Look, how our partners rapt). However his subsequent actions prove he is capable of free will (We will proceed no further in this business) and that he is therefore responsible for his actions. In conclusion, Macbeth is capable of making choices, and he chooses to commit regicide for personal gain. This was not forced upon him by the satanic tempters, they are not controlling him. One character who does attempt to exert control over Macbeth however is his wife, Lady Macbeth. In the next paragraph we will examine the way in which she attempts to do this and to what extent she is responsible for the tragedy. Lady Macbeth was first told of the witches prophecy in a letter from her husband. Her first reaction is to doubt her husbands ability to achieve it, (Thou wouldst be great, Art not without ambition, but without the illness should attend it). Her use of the word illness refers to her suspicion that Macbeth does not possess the necessary ruthlessness to enable him to become king. This establishes her as the dominant partner in their marriage, which extends to her taking the lead in the plot to supplant Duncan with Macbeth. Her invocation of evil spirits is an invitation to Satan to purge her of her humanity (And fill me from the crown to the toe top-full / Of direst cruelty) so to as better enable herself to conspire to murder. Lady Macbeth is aware that her husband has great affection for her (he calls her My dearest partner of greatness and my dearest love), and uses this to her own advantage when she persuades Macbeth to follow through with her plan when he has doubts (We will proceed no further in this business). She achieves this by calling into question his love for her (Such I account thy love) and uses this supposed implantation of doubt in his character as a tool by which she can control him. When she uses the word desire for his ambition (As thou art in desire), she is attacking his masculinity and insinuating that if he does not do this he is not really a man. There are two elements of desire she refers to, the ambition to become king, and also implying sexual desire by which she is challenging his masculinity and provoking a reaction. Macbeth takes the bait (I dare do all that may become a man), meaning he is now resolved to proving to her that he is a man. She says she will not consider him a man until he fulfils his promise (And to be more than what you were, you would be so much more the man). This also demonstrates her use of flattery to coerce him to her will. Another emotional tool Lady Macbeth wields to her advantage is the memory of hers and Macbeths deceased child. (How tender tis to love the babe that milks me, / I would dashed the brains out, had I so sworn as you / Have done to this.) She uses this memory as a shock tactic, evoking the raw anger and passions that stem from losing a child, to show Macbeth that had she promised to do something she would honour that promise, and so must he. We know that Macbeth has no children from a conversation Macduff has with Malcolm, telling him that Macbeth has no children. Therefore we must deduce the Macbeths have suffered a bereavement, for Lady Macbeth previously mentions the feelings of motherhood. From this we see Lady Macbeth does play a substantial role in the killing of Duncan, however she argues she was justified to take this course of action because her husband Macbeth wants her to, or else he wouldnt have sent the letter. What beast wast, then, / That made you break this enterprise to me?). His letter to Lady Macbeth could possibly be his subconscious mind, anticipating his inhibitions, and so constructing an external force, in the form of Lady Macbeth, to impede any change of mind or unwillingness to kill Duncan. Earlier pre-Freudian commentators thought that Lady Macbeth was over-reacting to Macbeths remarks on the witches. However in the light of Freuds theories on the unconscious mind (that your statements reflect your deepest preoccupations), Macbeths mentioning of the witches prophecy in his letter to his wife could be interpreted as an invitation to her to help him realise it. It seems that Macbeth would not have killed Duncan without the pressure from his wife. However his initial openness to believe that the witches prophecies are true (Tell me more), are indicative of his underlying aspirations to be king. Banquo, who was himself prepared to indulge in their stories, and even invited them (Speak then to me) harboured no such allusions of entitled greatness. He quickly tries to relinquish the witches promises, dismissing them as tricks (The instruments of darkness tell us truthsto betrays in deepest consequence). Shakespeare was constrained in his ability to portray Banquo as anything less than chivalrous because of his historical relation to James I, who believed him to be a distant ancestor. However, Shakespeare was able to use Banquo as a dramatic contrast to Macbeth. In Act 2 Scene 1 Banquo was able to resist his temptations by the calling of heavenly powers to help banish the traitorous thoughts from his mind. In contrast Macbeths own willingness to believe in the witches so fervently is an indicator of an already formulated plan to deprive Duncan of his throne. Throughout the play Macbeth continuously abdicates responsibility for his actions (I go, and it is done; the bell invites me), preferring to concentrate on his end goal rather than the suffering he is causing in the present. Macbeth says of the hallucinated dagger Thou marshallst me the way that I was going, which demonstrates his belief that fate (represented through the instrument of murder, the dagger) is compelling him to commit these acts of evil by leading his hand for him. (If it were done when tis done, then twere well / It were done quickly). Here he shows he takes no pleasure in his actions and wants them over as soon as possible. The audience understands that this is just a coping mechanism that allows him to carry out these evil deeds; however his ability to remain apathetic and dissociated with his actions does not allow him to escape ultimate responsibility. Shakespeares attempts at dealing with issues of responsibility and motivation in his characters bring up some initially unexpected conclusions upon penetrating the surface. The most telling of these is perhaps Macbeth himself, whose conflicted aspirations of greatness, greed and apathy in the face of suffering are indicative of the worst of human nature. Another character who demonstrates a number of human qualities is Lady Macbeth, who has often been misrepresented as the figurehead of greed and self-interest in the past. In fact she could possibly be seen as the victim of an indecisive husband who uses her to carry his burdens of self doubt and insecurity. The witches initial roles as catalysts of events through their indiscriminate torture of Macbeth are in fact, when considered within the context of James Is book Daemonologie, sent by God as judges to test Macbeth. The underlying message of the play is the uncomfortable responsibility that we must all take responsibility for our own actions, and that however much wed like to be able to pass blame, we cant.

The Demand Of Petroleum Products In Ghana Economics Essay

The Demand Of Petroleum Products In Ghana Economics Essay Over decades, there has been no commodity price that has received so much attention predictions and speculations than crude oil price. However, intellectuals always fail in their predictions to produce the expected results. Crude oil in its original state has no value to the consumer until it is transformed into useable products such as Liquefied petroleum Gas (LPG), Kerosene, Gasoline, Diesel and other petrochemicals.  [1]  In most countries, motor fuels (Gasoline and Diesel) are always dominant than other petrochemicals. But Liquefied Petroleum Gas and other natural gas are becoming more visible in todays global oil and gas industry.  [2]  Like any other commodity in the market, the prices of these products as well as their demand, keep responding to changes in crude oil price and other market conditions. This movement in fuel prices causes worry among pundits, politicians and everyone who uses these products. Petroleum products get to the final consumer or to the market th rough different channels. The sales of these products also vary from one market or geographical location to another. Refiners either sell to wholesalers or sell to company-owned or company franchised retail sites.  [3]  For example, in the United States of America, the open market dominates and has a greater share of the market. However, in countries such as Malaysia, Mexico and most developing countries National Oil Company (NOC) own retail outlets and hypermarkets control majority share of the petroleum product market. In most West African countries one can even see by the roadside, these products filled in bottles and jars for sale.  [4]   This shows how important these products are in the day to day activities of consumers. Ghana imports crude needs from other countries to meet almost all of its crude needs and as such face the consequences of price volatilities. Ghana like most other developing countries is faced with the problem of a pricing scheme of petroleum products that will be acceptable to the population but which will not also cripple the economy. This is because the government of the day always subsidise the prices of these products as a way of reducing the impact on the ordinary Ghanaian consumer  [5]  . Since 2000, there has been a consistent rise in the consumption level of petroleum products even though the prices of these products keep increasing  [6]  . Many have tried to analyse the effect of changes in the price of these products on the final demand and on the welfare of the consumer in other countries. But, there seems to be little literature on that of Ghana. This study therefore seeks to analyse the effect of changes in crude oil price on the demand of petroleum products in Ghana. The underlying assumption is that, any change in crude oil price manifest itself in the prices of the derived products such as petrol, diesel, LPG, kerosene and other petrochemicals. The study employed an econometric method as a way of examining and analysing the effect of changes in price of the various products on the total demand of petroleum products (petrol, diesel, LPG and Kerosene) in Ghana from 2000 up to 2011. This study is organised into four chapters. Chapter one covered the Introduction. The background as well as the demand for petroleum and the theoretical framework are captured in chapter two. Chapter three contained the analysis and discussions of the findings. Chapter four is the concluding chapter. It also captures some recommendations. CHAPTER TWO 2.0 BACKGROUND 2.1 Global Demand for Petroleum Products The oil and Gas industry is one of the largest and complex global industries which touch almost every part of the human life with products such as gasoline, kerosene, gasoil, lubricants and thousands of petrochemicals products. The demand for crude oil is derived demand  [7]  . As indicated earlier on, crude oil in its original state has no value to the consumer until it is transformed into useable products such as Liquefied petroleum Gas (LPG), kerosene, Gasoline, Diesel and other petrochemicals  [8]  . The demand for these products over the past decade has been increasing in both industrial and developing economies  [9]  . There is no product price that has received so much predictions and speculations than crude oil price. But these predictions in most cases failed to produce the expected results. Like any other commodity in the market, the prices of these products as well as their demand, keep responding to changes in crude oil price and other market conditions  [10 ]  . According to Suleiman 2009, consumption of petroleum products in Indonesia has grown significantly and as a result, by 2004, Indonesia had become a net-importer of both crude oil and refined products  [11]  . 2.2 Demand for Petroleum Products in Ghana The Ghanaian economy depends solely on import for its petroleum needs. The Tema Oil Refinery (TOR) is the only refinery in the country charged with the responsibility of refining crude oil to produce petroleum products for domestic demand  [12]  . But, its inability to carry out this mandate effectively and efficiently has given rise to importation of some petroleum products from neighbouring country  [13]  . Approximately, 70% of the demand is met with products are produced by TOR and the remaining 30% from imports. The country imported its entire crude oil requirement as at December 2010, which is refined at TOR. However, this is looking to change as the country now produces oil in commercial quantities. The petroleum products marketed in Ghana are Premium Gasoline, Kerosene, Residual Fuel oil, Gas oil, LPG and Premix  [14]  . Bulk supply of these products is reliable and is done through an extensive infrastructural network comprising of storage depots located at strategic parts of the country, pipelines for the movement of petroleum products, Bulk Road Vehicles (BRVs) and also barges located on the Volta Lake  [15]  . The actual supplies however improved compared to the previous year and for that matter shortage of LPG and diesel were not as serious as in 2010. There are a number of factors influencing the consumption of petroleum products in the country. Among these factors are prices of the various products, real income of the consumer, changes in the number of consumers as well as the availability of these products. For instance, significant increases in retail prices of LPG for vehicular fuel have helped in reducing its consumption and on the other hand increased consump tion of gasoline and invariably the sales of the latter  [16]  . Inability to raise the required and adequate funds for the required LPG import due to cross-subsidisation enjoyed by the product might have also contributed to moderate LPG consumption compared to the Energy Commissions forecast during the year  [17]  . It was projected that the requirements for the major petroleum products-gasoline, kerosene, gas oil and LPG will increase significantly from 1.62 million tons in 2005 to 2.49 million tons by 2015 representing an annual growth rate of 5.3% over the period  [18]  . Access to petroleum products in Ghana is satisfactory, but has to be improved as the population grows. As at 2010 there were a total of 1700 petroleum products retail outlets of which 37% are Service Stations (SS), 20% are Filling Stations (FS) and 43% are Reseller Outlets (RO)  [19]  . The total number of retail outlets represents an access ratio of 71 retail outlets per 1,000,000 people  [20]  . There are also vendors who sell mainly kerosene in rural communities, thereby increasing the accessibility of petroleum products in most part of the country. The National Petroleum Authority (NPA) is a statutory agency responsible for regulating, overseeing and monitoring the petroleum downstream industry in Ghana to ensure efficiency, growth and consumer satisfaction  [21]  . It is also charged with the responsibility of monitoring and regulating petroleum prices in accordance with the prescribed pricing formula. With strong economic growth and steady population growth over the past years, Ghanas total energy demand for petroleum products has grown substantially. Table 1 show the total demand for the various petroleum products in the country. It also included the Gross Domestic Product (GDP) of Ghana from 2000 to 2011. Figure 1 shows the trend of movement for the same period under study. TABLE 1: PETROLEUM PRODUCT CONSUMPTION AND GDP YEAR PETROLEUM PRODUCT CONSUMPTION GROSS DOMESTIC PRODUCT (GDP) 2000 5,536.30 4,977.50 2001 5,895.20 5,176.60 2002 6,109.00 5,409.50 2003 6,048.20 5,690.80 2004 6,338.10 6,009.50 2005 6,505.10 6,364.10 2006 7,131.70 6,771.40 2007 7,407.60 7,208.80 2008 7,526.30 7,816.50 2009 8,160.40 8,180.60 2010 8,349.90 8,722.20 2011 8,877.10 9,890.90 SOURCE: National Energy Statistics 2000-2011 From the table above, the total energy demand for petroleum products 5,536.30 kilotonnes in 2000. This increased to about 8,877.10 by the end of 2011. It shows an average annual increase of 4.01% in energy demand. GDP which shows the real income of the country was US$4,977.50 billion as at 2000 and increased to US$ 9,890.90 billion by the close of 2011. This also shows an average annual growth rate of 4.5% within the same period understudied. This is a clear indication that, as the real income of the country increases, more petroleum products are demanded even though price of crude oil was on the increase as indicated in table 2 below. FIGURE 1: TREND IN GDP AND TOTAL PETROLEUM PRODUCT DEMAND From figure1 above, it is clear that, there is a strong correlation between petroleum product demand and the GDP of Ghana. The trend shows that as GDP grows, demand for petroleum products grows as well. Its further shows that as the real income of consumers increase, they tend to demand more of these products and hence movement of the two curves in the same direction. TABLE 2: PRICES OF CRUDE OIL AND SOME PETROLEUM PRODUCTS YEAR CRUDE OIL (Brent price US$) DIESEL PRICE (US$/l) PETROL PRICE (US$/l) KEROSENE PRICE (US$/l) LPG PRICE (US$/kg) 2000 28.5 0.4 0.3 0.3 0.5 2001 24.4 0.3 0.3 0.3 0.3 2002 25 0.4 0.3 0.3 0.4 2003 28.8 0.5 0.5 0.4 0.5 2004 38.3 0.6 0.5 0.5 0.5 2005 54.5 0.8 0.7 0.6 0.6 2006 65.1 0.9 0.8 0.7 0.8 2007 72.4 0.98 0.9 0.8 0.9 2008 97.3 1 1.1 1 0.9 2009 61.7 0.7 0.7 0.6 0.5 2010 79.5 0.8 0.8 0.6 0.6 2011 111.3 1.1 1 0.6 0.7 SOURCE: National Petroleum Authority From Table 2 also, it can be seen that crude oil price has been volatile, but generally on the rising side from 2000 up to 2011. The price of crude oil was US$ 28.5 in 2000 which decrease to about US$ 25 in 2002. It picked up again in 2003 and rose continuously to a high of US$ 111.3 by the end of 2011. Also prices of the various petroleum products responded accordingly to changes in the price of crude oil as indicated in table 2 above. In 2000, diesel was sold at US$ 0.4 per litre, petrol US$ 0.3 per litre, LPG US$ 0.5 per kg and kerosene was US$ 0.3 per litre. However, as crude price increases, the prices of diesel, petrol and kerosene also increased to US$ 1.1, US$1.0 and US$0.6 per litre respectively by the end of 2011. LPG also increased to US$ 0.7 per kg over the same period. FIGURE 2: TREND OF PRICES OF CRUDE OIL AND PETROLEUM PRODUCTS From Figure 2 above, it is also clear that, the prices of the various petroleum products respond positively and directly to changes in crude oil prices. This can be explained by the fact that, these products are derived from crude oil and hence, any change in its price or quantity will have corresponding effects on its products. 2.3 Theoretical framework The price of crude oil has been characterised by major swings especially in the 1970s and 2008 and has always impacted on the demand for petroleum products. This has increase the interest of many economists and other intellectuals and has since led to a number of studies that seek to investigate the relationships between real income, real prices and the consumption of petroleum products  [22]  . Dahl (1994) conducted a survey of petroleum demand in developing countries  [23]  . The result showed that the average price elasticity of demand of petroleum products for developing countries was -0.36, and income elasticity was 2.20. This suggested that, the demand for petroleum products is more responsive to changes in income than changes in real prices. Suleiman S.2009, used selection criteria from various models as way of cointegration approach to estimate the price and income elasticities of demand for total petroleum products such as gasoline and diesel in Indonesia. The results suggested that both total products and gasoline share estimates are more responsive to changes in income than changes in the real price of petroleum products. Based on this, he suggested that policy makers may need to use market-based pricing policies and other policies such as public enlightenment in addition to regulations like minimum energy efficiency standards to promote efficiency and conserv ation and curb the rising consumption of petroleum products in Indonesia.  [24]   Akin et al 2009 conducted empirical studies which sort to estimate the demand elasticities of petroleum products in Nigeria. The study employed a multivariate cointegration approach to estimate both the short-run and long-run price and income elasticities. The result showed that, energy consumption responds positively to changes in GDP and negatively to changes in energy prices. The study concluded that both price and income elastticities are inelastic even though the elasticities of demand vary according to product type.  [25]   Maria et al 2011 employed an econometric method developed by Deaton to calculate the price and income elasticities of demand for domestic energy in Mozambique. The calculations were done for all households at the national level, differentiating urban household from that of rural folks. The result showed that the responsiveness to changes in both price and income were higher for high-grade energy sources such as gasoline, diesel and LPG and lower for low-grade sources such as charcoal and fire-wood. They concluded by indicating that, the potential for energy transition in the domestic context is not directly visible from the price and income elasticities.  [26]   2.4 Methodology From the theoretical framework above, Dahl (1994), Suleiman S. (2001) and Akin et al all employed the cointegration approach in analysing the relationship between demand of petroleum products and changes in price. Maria et al (2011) applied an econometric method developed by Deaton in their study  [27]  . This study follows the approach adopted by Maria et al (2011). It is advantageous because it uses unit values as the prices of goods and hence provides the opportunity for the use of individual fuel prices. However, the usage of these unit values can lead to biased elasticity estimates  [28]  . The total demand for petroleum products (share of gasoline, Diesel Kerosene and LPG) can be specified as a function of real per capita GDP and real prices of Gasoline, Diesel, Kerosene and LPG. This can be modelled as follows: ED= f (GDP per capita, Price of Petrol, price of Diesel, price of Kerosene and price of LPG)à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (1) Forming a linear regression equation from the function gives; Ed= a0 + b0GPD/p + c0pP + d0pD + e0pK + f0pLPG + u0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (2) Both the dependent variable and the independent variables are transformed to natural logarithms and hence double log estimation equation. This is written as follows lnEd= a0 + b0lnGPD/p + c0lnpP + d0lnpD + e0lnpK + f0lnpLPG + u0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (3) Edà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. Demand for petroleum products GDP/pà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. Gross Domestic Product per capita pPà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..price of petrol pDà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..price of Diesel pKà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ price of Kerosene pLPGà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦price of Liquefied Petroleum Gas a0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..constant term u0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..stochastic term CHAPTER THREE: 3.0 ANALYSIS AND OUTCOMES Using the double log estimation equation as; lnEd= a0 + b0lnGDP/p + c0lnpP + d0lnpD + e0lnpK + f0lnpLPG + u0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ Where, Edà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. Demand for petroleum products GDP/pà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. .Gross Domestic Product per capita pPà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. price of petrol pDà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. price of Diesel pKà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..price of Kerosene pLPGà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.price of Liquefied Petroleum Gas a0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦constant term u0à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦stochastic term TABLE 3: REGRESSION ANALYSIS lnGDP/p lnpP lnpD lnpK lnpLGP coefficients 1.017487 0.081134 -0.0214456 0.049237 -0.11419 p- values 0.022904 0.822455 0.925098 0.732547 0.276798 R Square 97.8% Confidence interval 95% Standard error 0.029936 Source: Arthurs construct 3.1 Discussion of outcomes 3.1.1 Gross Domestic Product per capita From the analysis summarised in table 3, GDP per capita as a variable shows a positive sign in its coefficient against demand for petroleum products. This implies that, as real per capita income of consumers increases, their demand for petroleum products increase as well. Its p-value of 0.022904 is also below the significant level of 0.05 (95% confidence) which is an indication that, the effect of changes in GDP per capita on the demand for petroleum products is statistically significant. 3.1.2 Petrol In terms of elasticities, a coefficient of 0.081134 for petrol shows that, the demand for it is inelastic. This implies that changes in the price of petrol leads to less than proportionate change in demand. The positive sign however does not follow the a priori expectation. But it shows that, over the period under study, there is a direct relationship between demands and price of petrol. Thus, any increase in the price petrol leads to an increase in its demand. The p- value however confirms that, this direct effect is not significant at 0.05 significance level since the value 0.822455 is greater than 0.05 (significance level). 3.1.3 Diesel From the table, the coefficient of diesel is quite revealing as it follows the a priori expectations in it demand. It has the expected negative sign which confirms that any increase in it price will result in decrease in it demand and hence decreasing the level of total demand for petroleum products in Ghana. But this is not significant at 95% confidence interval as the p-value of 0.925098 is greater than 0.05. 3.1.4 LGP Also from the table, the coefficient of LPG revealed the a priori expectations in it demand. It has the expected negative sign which confirms that any increase in it price will result in decrease in it demand. This is an indication that, decrease in the level of total demand for petroleum products in Ghana can be the result of increases in the price of LPG. But this is also not statistically significant at 95% confidence interval as the p-value of 0.276798 is greater than 0.05. Thus, inelastic demand for LPG. 3.1.5 Kerosene The variable price of kerosene shows a positive sign. This sign again does not follow the a priori expectation. This result implies that, there is a direct relationship between demands of kerosene and its price and hence, any increase in the price kerosene leads to an increase in its demand. But this is not the case or the expectation as the demand for kerosene decrease due to increases in it price. However, the p- value shows that, this direct effect is not significant at 0.05 significance level since the value of 0.732547 is greater than 0.05. The R2 of the analysis is measures the overall goodness of fit of the regression. The test result indicates that, the R2 =0.978 = 97.8%. It shows that the independent variables (GDP per capita, price of petrol, price of diesel, price of LPG and price of kerosene) explain the dependent (demand for petroleum products) variable to the tune of 97.8%. CHAPTER FOUR: 4.0 Conclusion This study analysed the effect of oil price change on the demand for petroleum products. This effect is analysed through the changes in the various prices of the major petroleum products (petrol, diesel, LPG and kerosene) consumed in Ghana from 2000 to 2011. The study employed a double log equation in its analysis. It included the Gross Domestic Product per capita as a measure of the real income of consumers. The results show that aggregate demand for petroleum products in Ghana follows with the a priori expectations of negative price elasticity and positive income elasticity. The results also showed that, the demand for petroleum products in Ghana has been on the increase from 2000 to 2011 and future still promise to show more increment if the economy maintain its strong growth pattern. The analysis of the results show that the real income of the consumer measured by GDP per capita has a positive sign which indicates that, as real per capita income of consumers increases, their demand for petroleum products increase as well. Its p-value of 0.022904 is also below the significant level of 0.05 (95% confidence) which shows that, the effect of changes in GDP per capita on the demand for petroleum products is statistically significant. The test result also shows that, for the period under consideration, the demand for the major petroleum products (petrol diesel LPG and kerosene) is inelastic even though their individual coefficients vary. Their prices continue to increase throughout the period under consideration as oil price increases. Total demand for these products increase as well. Notwithstanding the values of the study, it should be noted that energy demand might assume different implications in different economic sectors. Different sectors of the economy have different consumption behaviours and as such, have different optimal demand decisions under the same constraints and do not necessarily demand the same services from the various energy forms. Sectoral analyses of the demand for petroleum products will therefore, offer an in-depth analysis in future research works. 4.1 Recommendation In terms of policy implications, the study recommend that policy makers should design policy frameworks that will promote energy efficiency and conservation. These policies can be market-based pricing and taxation policies, policy that can ensure minimum energy efficiency standards and has the tendency of informing the public the consequences of the present trend in consumption and importation. Otherwise, the consumption of petroleum products is likely to continue to grow at a significant rate as long as per capita income continues to grow.