The Industry and Ethanol Producing Firms Essay Example | Topics and Well Written Essays - 250 words

The Industry and Ethanol Producing Firms - Essay Example Due to equilibrium in demand-supply of maze and production of ethanol, and subsidies, farmers producing maze were getting good prices till 2014. However, with withdrawal of subsidy in 2016, firms getting subsidy lost some of the incentives that is bound to affect their profitability. Since the demand for gasoline is always going to be there and is ever increasing with no substitute product available, as such there shouldn’t be any external business threat to firms producing ethanol. However, to sustain their profitability, they would be looking to reduce production costs or pass on the increase in prices to their consumers. At the same time, by reducing their production cost they can be more competitive in the market. Thus in the new scenario, only those ethanol producing firm would be profitable who would be able to keep their costs down and be more competitive in pricing. Another scenario for the firms can be to operate at lower per unit profit but doing volume sales to incr ease their gross revenue. For an individual firm, lower ethanol costs will mean higher sales. The industry is likely to witness the exit of small ethanol producing firms. It is assumed that gasoline production won’t be affected due to the withdrawal of subsidy on ethanol production. Therefore, the demand for ethanol would be hardly affected. As such, there won’t be any reduction in the production of ethanol. There are a large number of farmers producing maze and there are no barriers to selling maze to any of the ethanol-producing firms. Further, there is no big entry cost involved in maze production farming.

How Russia Viewed the Bush Presidency Term Paper

How Russia Viewed the Bush Presidency - Term Paper Example ning that main criterion in assessing the situation in Iraq should be the weapons inspectors findings, which must be presented to the United Nations Security Council. Russia, along with France and China, believed that the U.N. Resolution 1441 that created a new tough inspections regime, would be necessary for the United Russia had joined the coalition against terror, promising to share intelligence and offering political support to the US president. President Putin promised to increase the supply of weapons to the Northern Alliance in Afghanistan. Russia had supplied the Northern Alliance with arms to be used in Afghanistan against Taliban. He also offered to open Russian airspace to US airplanes for humanitarian flights, and to participate in search and rescue operations. When the leaders of the Central Asian States offered bases to the coalition for the attack against Afghanistan, Putin announced that he had approved the offer. However, it is important that there were vast differences between the two countries in their perception of terrorism. In Russia the origins of the terrorist threat lay in the weakness of the state. Political instability, poverty and inequality in Russia in the 1990s provided a fertile climate for radical groups to attract followers and for foreign Islamic networks to penetrate the country. Russia and the United States are also dealing with different enemies. The United States’ chief enemy in the war against terrorism is al-Qaeda. In Russia, however, the terrorist threat originates primarily in Chechnya. Russia seemed to get very little benefit from its cooperation with the coalition against terrorism. As a realist and a pragmatist, Putin understood that Russia would become irrelevant if it did not cooperate in the coalition against terrorism, but he also believed that knowledge of the difficulties of fighting in Afghanistan, the intelligence that Russia had been gathering and its relationship with the Northern Alliance were assets