Nowadays, in many parts of the world, the cost of basic requirements such as food and petrol has risen dramatically. As far as I am concerned, there are several reasons for this dramatic increase, such as international affairs and the supply-demand relationship. In this essay I will show the reasons why this problem occured, and what kind of solutions can be used to overcome it.
Firstly, since natural resources such as oil are not found in all countries, it is more probable that oil prices will be relatively affordable in an petrol-producing nation. This also applies to the cost of consumer goods. For instance, just as Saudi Arabia is one of the world’s largest oil exporters, Ukraine dominates the world in grain production. Consequently, in order to import goods at an inexpensive price, it is essential to maintain positive relations with the relevant countries and provide support when necessary.
However, this is not the final point to consider. Even when sufficient resources are available, the lack of modern technology for extracting these resources, or the presence of outdated equipment, can result in the same outcome.It is therefore evident that countries must consistently invest in technology and gadgets. To illustrate this, we may consider the case of the first steam engine, invented in England in 1784. The adaptation of this machine to industry resulted in a significant reduction in production costs and, consequently, in a notable decrease in product prices.
In conclusion, while maintaining price stability represents a challenging process, the application of right policies and steps, particularly those involving investment, can lead to the stabilisation of the country’s economy.