Materials and Price

Summary

The gassoline price topped 2,000won per liter yesterday at some retail stations. The average gasoline price was 1801.44won per liter on wendsday. It is 10% higher price than januarly. Diesel is also rose more than 20% to 1,760 won over the same period. The price of diesel rose faster than gasoline because of growing industrial demand in neighboring emerging economies such as China and India, where many factories run on diesel. This raises the cost burden on trukers and manufacturers. The government tries to curb energy consumption, with little succes in reducing effects on the ongoing oil crisis.

My opinion

I learned about “Pricing” last marketing class. The price is an important factor in market. It is determined by demand and supply economically. Nowadays many economic factors influence the demand and supply. Especially supply is influenced by technology, distribution and raw material, etc. Among them, raw material is a traditional factor. It will be a basic when salers determine a price.
Nowadays the major issue in the world is global inflation. It is caused by a raw material price. Many countries worry about this problem, because this problem will higher the products’ problem and the market will be getting freeze. Especially, it is a larger problem for Korea than other countries that they have large resource. Korea doesn’t have much resource, so if the raw material’s price higher, countries having resources have a market power.
For sorving this problem, Korea focus on other part. The solution is an intangible market like a service and finance. However, we consider something before we start these industries. Fist, Korea should have a good language power. Second, we must have a service mind. Lastly, the most Koreans have a mind understanding foreigners.
This raising oil price will be a critical crisis for Korea and other developing country. However, we change our perspective. It will be a new chance, and this new industry will be strength in near future.

References;Author: By Ko Kyoung-tae Title: Gas hits new record The Korea Herald. May 23, 2008

20300174 Nah Kilwoong, Entry - 11