This section contains 3,185 words (approx. 11 pages at 300 words per page) |
The import and export of energy on the international market helps create world economic growth. Countries that need energy because they do not have very large domestic reserves must import energy to sustain their economies. Countries that have large reserves export energy to create growth in their energy industries. The export and import of energy also contributes to specialization and comparative advantage in the world economy, lowering costs of production, increasing productivity, and expanding world economic output.
Comparative advantage in energy trade creates more robust economic growth, similar to any economic trade. For example, an oil worker has a comparative advantage over the farmer in producing oil as a farmer has a comparative advantage over the oil worker in producing food. An oil worker who specializes in pumping oil out of the...
This section contains 3,185 words (approx. 11 pages at 300 words per page) |