Wednesday 23 September 2009

Let's talk about benefits and the cost of using the biggest ship to transport!Benefits:I think there will be less pollution for unit carried, also the massive capacity, because they can transport a lot of containers. Also it will reduce the price for consumer, because the cost of transport will decrease by the big ship. Low labour cost as well, because there are only 13 crews which case study mentioned. Also low fuel costs per container carried.Costs:To Build the biggest ship should cost a lot, also if a ship is very big, the speed will reduce because when they want to pass some canal, for example Suez canal, they will use a lot of time. Also there are railway line needed. If they want to save money, the capacity of this ship must be full.Then, I would like to talk about another thing, If UK trade with China, they can spend less money to import, also when they transport some products from China to UK, they can create jobs for transport. Also it's leading to lower cost push inflation, because the products from China are cheaper, which reduce the price of goods. However, trade with China might reduce the manufacture job in UK.

1 comment:

  1. Please bring in economic concepts whever you can. For example you could bring in (and have diagrams!):

    a. economies of scale (there is a poster on the wall)
    b. negative externalities (see poster)
    c. negative multiplier (AD/AS)

    Keep up the good work!

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