Bp Oil Spill Globalization Essays

1066 Words Nov 26th, 2010 5 Pages
The 20th of April 2010 will be marked as the worst day in British Petroleum PLC’s history, the day that there was an explosion on the Deepwater Horizon drilling rig whilst drilling in the Gulf of Mexico, killing 11 people and causing devastation to all the surrounding areas. The events of this day affected the global markets and relationships between countries substantially.
¹Daniels et al. (2009) states that globalisation is “The broadening set of interdependence relationships among people from different parts of a world that happens to be divided into nations.” and “the integration of world economies through the reduction of barriers to the movement of trade, capital, technology, and people”. And undoubtedly the disaster has affected
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The events of the rest of that day have led to a decline in the value of a share in BP and essentially the value of BP in general. ⁴At the end of 2009 BP shares were 40% owned by shareholders from the UK and 39% owned by US shareholders. This shows that the rapid decline in share value (lowest closing price being 302.90) has affected investors from all over the world and the lots of money will have been lost by investors all over the world. ³Also the amount of BP shares traded in the following weeks and months has increased dramatically and on the 10th of June 2010 over 300,000,000 shares in BP were traded globally. Showing an increase in trading across economies.
⁵Not just the globalisation of the oil industry has been affected however. The tourism industry based around the Gulf of Mexico has been affected. For example, a three-hotel chain Based in Panama received approximately one thousand cancellations as a result of the oil disaster. This translates into $191,000 or more lost in room revenue alone. Not only has it affected this particular hotel chain, but hotels on the coasts of the Gulf States have been affected negatively due to customers believing that the beaches – part of the attraction and the sea will be oil filled/covered. The cancellation of hotel booking will have led to cancellation of flights and other transportation methods as travellers look to go elsewhere or nowhere at all

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