Government, Market Forces and Renewable Energy Systems (RES) Essay

Government, Market Forces and Renewable Energy Systems (RES) - Essay Example To tackle this issue globally there have been recent researches in the line of climate change mitigation, use of renewable resources, and energy economics. Climate mitigation  relates to activities associated with the alleviation of the potentially harmful aftereffects of global warming by â€Å"implementing policies to reduce GHG emissions and enhance sinks† (Verbruggen, A., IPCC Glossary Working Group III, annex I, 818). The UN delineates climate mitigation as a form of â€Å"human intervention to reduce the sources or enhance the sinks of greenhouse gases† (United Nations, Glossary of climate change acronyms, 2011).  Examples for mitigation include using renewable energy resources like wind or solar power, judicious use of fossil fuels in industries or for production of electric power, bettering building  insulation, afforestation  and increasing the number of other sinks that would displace larger amounts of  atmospheric carbon dioxide  from the atmosphe re (ibid). ... However, an April 2011 report shows that the atmospheric volume level of CO2 by itself is 393 ppm, while increasing at an average annual rate of 1-3 ppm (Direct Air Capture of CO2 with Chemicals, 2011, 4). Therefore, to avoid violating the target set at 2  °C target, the levels of CO2 in atmosphere must necessarily be stabilised as soon as possible, though it is unlikely that the set target would be achieved soon (Adam, World will not meet 2oC warming target, climate change experts agree, 2009). However, a majority of the nations consider mitigation strategies for greenhouse gas emissions as expensive, and there is a widespread debate regarding mitigation costs and the nature of costs-distribution of climate change mitigation, amongst the developed, the developing, and the underdeveloped nations. Ensuring climate change and energy supply security are the core concerns for a majority of the world’s policymakers aiming to frame a worldwide energy system that is sustainable in nature. 1 Climate Change To meet the EU target of keeping global temperature rise below 2oC, the volume of atmospheric CO2 equivalents must be kept within volume limits of 445 - 490 ppm, as expressed in the 2007 report of the United Nations Intergovernmental Panelon Climate Change (IPCC, 2007). In 2005, greenhouse gas emission concentration had already reached CO2 equivalents of 450 ppm, owing to which IPCC had appraised in the report that greenhouse gas discharge must reach its highest level latest by 2015 (ibid). The report also suggested that greenhouse gas emissions must be decreased by 50–85% by 2050 (relative to the figures recorded in 2000), and the reductions made must be nearer to 85% to avoid

INTERNATIONAL BUSINESS FINANCE Essay Example | Topics and Well Written Essays - 3000 words

INTERNATIONAL BUSINESS FINANCE - Essay Example A well reputed business will attract a vast pool of franchisees in the foreign land as brand recognition is one of the key advantages that every franchisee is keen to get from a franchise contract. Through franchising an organization can avoid many of the start up problems that it can face in a new country. By having a local person as a franchisee in order to sell its products the organization will be able to gain trust of the people of the new country and it will not feel alienated in a foreign land. Moreover the franchisee may guide the organization to gain recognition in its new market by applying specifically those marketing techniques that correspond to the taste of the general public. Additionally the organization will have a promising return in shape of royalty fees. But franchising also entails some drawbacks as an overseas expansion strategy. Firstly, the organization will face cultural barriers especially the language barrier (if the language of the home country and foreign country are different) while finding a suitable franchisee and then initiating its operations in a new territory. Secondly, the organization personals have to visit the foreign country, and most probably stay there for some time, in order to acquaint themselves with the ground realities and assist the initiation of operations. Thirdly, heavy capital investment will be needed in order to install machineries in new place. Lastly, the organization has to constantly inspect the franchisee operations in order to ensure quality consistency which is the essential characteristic of any franchise. 2. Licensing: licensing can be comparatively a safe mode of expanding overseas in which an organization (the licensor) permits the company (the licensee) in a target market to use its property which is usually intangible e.g. patents, trademarks and production techniques (Quick MBA n.d.). Licensing reduces risk as the licensor produces and markets the product while licensor receives the license fe e. Moreover licensor can get a higher ROI because of its minimum investment. Furthermore licensing is an effective tool to avoid the trade barriers and helps the organization to develop its brand name by familiarizing itself in the foreign country through licensing. But licensing is not without its drawbacks. The licensor does not get mega brand recognition in the new territory because it is not producing the producing but merely extending its name/label to the product. Even more there is a potential danger of knowledge spillovers and licensee may become a competitor in future once the license time period is over. 3. Joint Venture: joint ventures can be defined as "an enterprise in which two or more investors share ownership and control over property rights and operation" (Market Entry Strategies n.d.).While joint venture facilitates the sharing of technology and work load it also ensures financial strength. Joint venture entails medium level of control as both the organizations in it work at the same level and there is no one boss who can dictate the working of joint venture rather it is more about mutual cooperation. It is a very suitable way of entering in a foreign market when the organization wants to create a synergy by combining two teams that have distinct skills and when combined together can produce outstanding results. Joint venture can prove to be an inappropriate way of entering in a new market when the partners in a joint venture can be potential competitors and have same line of products. In these cases join venture