Energy and economy—The vital role to the world Essay

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Energy and economy—The vital role to the world

Introduction: International view
Globalization becomes a irreversible trend in this century. Most of countries’ Governments and enterprises are paying close attention to The development of the international situation. Therein, the most important factors are energy and trade. In other words, Energy is the fundamental of a country’ existence and development; and trade determines the level of development of a country.
The below essay will take Suntech company as example to expound implications for Australian Government and company, multinational company and International energy issue. On the other side, global business concepts and trade theories will be applied by Nike analyzing.

Global energy issue
Energy to a country is as important as food to a person. However, In 2011, Under the background of further deterioration of the confliction between supply and demand, two hot issues of clash in West Asia and Japan nuclear accident have a serve impact on the world energy situation which result in a negative impact on global energy consumption. Even Russia and Canada withdraw from the Kyoto protocol in order to better development and utilization of resources.

To these non-renewable energy resources, governments of different countries face to an several knotty energy problems. These issues are divided energy sources by geological keys into: below earth’s surface, traditional natural gas, biogas,oil and coal are drying up;and above surface, Immature technology, geopolitics and government erroneous decision are restricting the new energy development and availability of energy provide. With troubles happen in both parts, energy prospects has a only downward way. (①IEA, 2011)
Australia is a strong energy country with 24 billions dollar export sales revenue. Thus in future, Australia will play a significant role in global energy situation. On the other side, Total energy in Australia's demand between 2000 and 2020 will increase by more than 50%. Average annually growth rate of coal is 1.1%, oil takes 2.0% average annual growth rate, the gas is 3.9%, and other energy, hydropower, biomass, wind and solar energy) is 2.5%. And in other situation on the use of renewable energy, water generation average annually growth rate is 0.9%, raw biomass is 2.6%, and 7.7% annual average growth rate of the highest wind and solar energy(Melbourne Gov 2011). Due to wind and solar energy with high growth and using rate, Australian energy company has a at least $37 billion(but now $50 billion) investments by 2020 to develop the solar and wind energy industry in order to meet energy needs(Canberra 2004). Therefore, it is worth to analyze the solar company in Australian market and international position.

Position and relation of Suntech solar company
Suntech power enterprise is a multinational company which founded in 2001 in Wuxi, China by Dr. Shi, and list on New York stock exchange in December 2005. From 2004, Suntech generate 60 MW to 2011 2GW generation. Suntech is a very successful technique company. In world solar market, Suntech take the third largest company in 2008.

In addition, Suntech is one of oversea flagship enterprises with NSW Government, it invests total 3,000,000$ annual in stability research partnership with NSW University, ①Infigen energy company and ②ARC center of solar research facility(NSW Government, 2009). NSW government assist Suntech investment by advising some future programs and government policies. Furthermore, Government approval the Suntech and UNSW to using advanced solar technology to establish the first solar energy farm in NSW state. With the tough relationship with Australian and Chinese Government as well as high-tech concept, productions of Suntech got a evident progress before 2011 around the world.

Nevertheless, Suntech is confronting a darkness cyclical downturn these five years. On one side, it’s(STP) stock index crashed from 90$(2008) to…