October 2, 2008
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The Ripple Effect of High Oil Prices
The global economy depends on a superinfrastructure of air, land, and sea transportation networks to move basic goods, primary energy, and people across borders. The global manufacturing industry, particularly in Asia, has thrived due to the massive profits gleaned from items with a high price to weight ratio, such as food, clothing and information technology, that were transported cheaply all over the world. However, the volatile nature of oil prices has shaken the foundation of the transportation-oriented global economy, and sent ripple effects throughout numerous sectors.