Keynesian theorists believe that changes in aggregate demand, whether unforeseen or anticipated, have their impact on actual employment and production, not on prices. This concept has been represented in the Philippine curves which indicate that inflation moves very slowly as unemployment moves. They believe that the long term will last long enough to ultimately matter (King, 1993). Keynesian economic theory is named after the famous British economist John Maynard Keynes. John Maynard Keynes lived between 1883 and 1946. His ideas are said to have been based on the circular flow of money. This then gave rise to several interventionist economic policies during the period of the Great Depression. According to the school of thought, person A's expenses contribute to person B's income. In this case, when person A buys services or goods from person B, and therefore, person B spends his money and thus contribute to the income of person C. Thus: Keynes thought that this circular system of currency exchange would allow the economy to function normally (King, 1993). This company did not use the outsourcing method but rather largely integrated mergers to increase its competitiveness. In its quest for expansion, Conoco merged with the Philips Company in 2001 and the deal was finalized in 2002. The merger of Conoco and Phillips to form ConocoPhillips came at a time when intense rivalry in the industry was high . In this case, rival companies merged to consolidate their market positions. The merged ConocoPhillips was then ranked as the sixth largest energy company in the world. Three years...... middle of paper ...... investment requirements of business entities. This allows the company and its shareholder to determine the amount of exploration and production exposure required. Although in the current environment of volatile commodity prices, mergers and acquisitions can enhance the future growth of the company by providing access to all resources. Works Cited Abubakar, IA and ConocoPhillips and its acquisition of Burlington Resources: strategic fit? Retrieved March 7, 2014 from http://www.dundee.ac.uk/cepmlp/gateway/files.php?file=cepmlp_car14_67_419431265.pdfConocoPhillips (2002), Conoco Inc. History. Accessed March 7, 2014 from http://www.conocophillips.com/EN/about/who_we_are/history/conoco/Pages/index.aspxKing, R G. (1993), “Will the New Keynesian Macroeconomics Resurrect the IS-LM model "Journal of Economic Perspectives 7, no. 1 67-82.