GLOBAL BUSINESS Management

Contemporary Issues In Global Business Management

Contemporary Issues In Global Business Management

PART 1

1.Introduction: overview of the issue

Recent years and months have seen increasing attention being paid to the issue of energy security. Energy insecurity combined with other global issues risks fueling conflict, repeating past mistakes in history. There are a number of concerns and fears such as oil and other fossil fuel depletion, reliance on foreign sources of energy, geopolitics such as supporting dictatorships, rising terrorism, “stability” of nations that supply energy, energy needs of poorer countries, and demands from advancing developing countries such as China and India, economic efficiency versus population growth debate, environmental issues, in particular climate change, renewable and other alternative energy sources

Many fear that the world is quickly using up the vast but finite amount of fossil fuels. Some fear we may have already peaked in fossil fuel extraction and production. So much of the world relies on oil, for example, that if there has been a peak, or if a peak is imminent, or even if a peak is some way off, it is surely environmentally, geopolitically and economically sensible to be efficient in use and invest in alternatives. Some may argue ideologically that markets will solve this problem. However, markets are good for making profit and allocating resources efficiently for that purpose, but that does not always mean that is good for the environment or for society or for other societies in other parts of the world. Furthermore, in reality markets are not perfect, so even if the theory holds, reality sees a mixture of politics, power play and corruption, even in the most advanced countries.

An overvie of Indian Energy

Energy has been unanimously identified as one of the most significant inputs for financial development and human development. There is a powerful two-way connection between financial development and power consumption. On one hand, development of an finances, with its international competitiveness, hinges on the accessibility of cost-effective and environmentally benign power causes, and on the other hand, the grade of financial development has been discerned to be reliant on the power demand.

Energy power (Table E.1g) is an sign to display how effectively power is utilised in the economy. The power power of India is over two times that of the matured finances, which are comprised by the OECD (Organization of Economic Co-operation and Development) constituent countries. India's power power is furthermore much higher than the appearing economies—the Asian nations, which encompass the ASEAN constituent nations as well as China. However, since 1999, India's power power has been declining and is anticipated to extend to decrease.

The sign of energy-GDP (gross household product) elasticity, that is, the ratio of development rate of power to the development rate GDP, captures both the structure of the finances as well as the efficiency. The energy-GDP elasticity throughout 1953-2001 has been overhead unity. However, the elasticity for prime financial power utilisation for 1991-2000 was less than harmony (Planning Commission 2002). This could be attributed to some components, some ...