Shells international business Research Paper Example | Topics and Well Written Essays - 3000 words

Shells international business - Research Paper Example Even though there are many energy sources, oil seems to be the most popular energy source in the world even now. It is often said that the economic growth of a country depends on its ability to produce or import oil resources at the cheaper rate. This is because of the fact that the majority of the industrial equipment and automobiles in the world are using oil as the fuel. Global economic growth is linked to oil prices. Any fluctuations in oil prices may create immense economic changes as well as changes in Gross Domestic Product (GDP) growth, unemployment and inflation rates in the world. For example, the 1973 -1975 oil price hike has shocked the world economy. The growth rate fell to 2.1% in 1974 and to 1.45 in 1975. The worldwide trade growth rate also dropped heavily from 12% in 1973 to -5.4% in 1974 and -7.3 in 1975. Foreign Direct Investment (FDI) has dropped from 40% in 1973 to half of it in 1974 (Oil prices and the global economy, n. d). According to a study by IMF Research Department (2000), â€Å"there will be a transfer of income from oil consumers to oil producers; there will be a rise in the cost of production of goods and services in the economy†. In short, oil seems to be an essential commodity required for global economic growth. In the oil business, the Royal Dutch/Shell Group of Companies needs no introduction in the global market. They are one of the largest global group of energy and petrochemicals companies with around 92000 employees in more than 70 countries and territories.