Which type of company will be most impacted by the oil issues in the Middle East — a global or non-global company?

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pohnpei397 eNotes educator| Certified Educator

It is likely that a global company will be impacted more than a non-global company.  There are at least two reasons for this.

First, a global company has a presence in more places than a non-global company.  This means that a global company has more chances to be impacted.  For example, a global company might have some sort of a presence in the Middle East, where they might experience local problems if there are any conflicts.

Second, a global company is more likely to be affected by the changes in the supply of oil.  The conflicts in the Middle East can lead to disruptions in the supply of oil.  When oil supplies are hit, companies that need oil more than other companies are more severely affected.  A global company is somewhat more likely to be impacted in this way.  The reason for this is that it is likely that a global company will need to ship materials more often and will therefore be more exposed to impacts from the price of oil.

Thus, it is likely that a global company will be more strongly impacted.