Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Electronics
  4. / More Electronics

by Answer Rabbit on April 14th, 2006

Answer Rabbit

Question

Help answer this question below.

Can an increase in oil prices affect the consumer electronics market?

Share:
Other

Answers. 1 helpful answer below.

  • by Astaroth on April 14th, 2006

    Astaroth

    Well, strictly speaking oil prices affect all markets indirectly. The process works this way:

    -Oil prices have a direct effect on gasoline (fuel) prices.
    -Gasoline prices affect transportation prices, making basically everything to have higher prices (consequently, generating inflation).
    -Inflation makes everyone's spending power to go down.
    -Higher gasoline prices also take a part of people's income that in other scenario would be spent on other goods or merchandise.
    -People spending goes to basic needs first, and the remaining to non-basic needs (such as consumer electronics) and then to savings.
    -When people have savings are more prone to spending on shopping.

    Now, the cost of oil (petroleum) affect directly the plastics and products that use plastics directly:

    -So, as most consumer electronics products have plastics involved in their production, the rise in the price will make them less affordable.
    -If you add this to the indirect effects mentioned before, the problem is even worst.

    Finally, you can conclude that YES, oil prices will affect the consumer electronics market indirectly (spending power) and directly (related cost of materials).

    • Like
    • Report

    1 comment | Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading Can an increase in oil prices affect the consumer electronics market?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Electronics oil price
How will oil prices affect you
How can higher oil prices affect consumers
Oil on consumer electronics
1h

Answerbag

a Demand Media company