Homework
As the special consultant to the President, you have been asked to evaluate the economic impact of four options and make a specific recommendation for what the country should do. The options are:
1) Option 1: Stop pumping until the market price reaches at least the extraction cost of $50 a barrel.
2) Option 2: Keep pumping to provide some cash flow.
3) Option 3: Sell offshore licenses to private international companies, which would pay a royalty of $15 per barrel with all extraction costs borne by the licensees.
4) Option 4: Prepare a bond to finance entry into the leisure market with high-end hotels, casinos and entertainment venues. Although this would restrict drilling operations to southern half of the island, the northern end of Petrolo could become a magnificent tourism venue for the world's wealthy. Tax-free operations for the first ten years of operations for major hotel/casino operations would entice investment.
Task
Prepare 4 to 6 pages paper that uses 2 or more sources, adheres to APA standards and addresses the following:
For each of the four options, identify three potential economic impacts considering both possible benefits and downsides and implications for Petrolo's government and citizens.
Based on your analysis and research, make one or more specific recommendations to address the issue.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.