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:
• Option I: Stop pumping until the market price reaches at least the extraction cost of $50 a barrel.
• Option II: Keep pumping to provide some cash flow.
• Option III: Sell offshore licenses to private international companies, which would pay a royalty of $15 per barrel with all extraction costs borne by the licensees.
• Option IV: 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 (3) 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 give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, and typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.