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Vegetable oil is an important component of cooking and food preparation in many cultures: Economics Assignment, UOC, UK
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| University | University Of Cambridge (UOC) |
|---|---|
| Subject | Economics |
Vegetable oil is an important component of cooking and food preparation in many cultures. Yet the market for vegetable oil has recently come under significant pressure.
The recent conflict between Russia and Ukraine is widely seen by analysts as responsible for pushing up global vegetable oil prices. At a time of significant economic hardships, this could potentially encourage consumers to reduce their spending on vegetable oil.
Using the prompt above and your own research, conduct an analysis on the environment facing vegetable oil producers in the next few years.
You should consider whether this is likely to be a contracting or an expanding market and whether the average firm in the industry will see increasing or decreasing profits.
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