Saturday, January 16, 2016
Economy: Cherries In Winter - How Cheap Oil Fosters Globalization
In the past cherries from the South were expensive because it had cost a lot to transport them to the North. But this changed. In the recent 18 months the price of oil collapsed about 75%. So, the costs of transporting things from A to B fell dramatically.
Not just the cherry lovers benefit. Their planters can sell their products easily worldwide and gain much more demand for their products. This advantage is not restricted to cherries of course, any physical good can now be transported worldwide for cheap - thanks to the oil price collapse. So, the sharp drop of transport costs fosters globalization. Delicious, isn't it?