Energy Future and International Trade

Abstract

The combined production of conventional energy sources – oil, natural gas, coal, and nuclear – in the United States is unlikely to increase substantially over the next 10 years. Thus, the United States must use its energy more efficiently in order to achieve its goal of maintaining satisfactory economic growth while reducing oil imports. But regardless of the U.S. picture, international trade in energy will continue to dominate the international business picture. Over the past 10 years, energy trade and resulting indirect trade effects have grown to account for about half of world trade; in turn, world trade has passed foreign direct investment in value. In the future, energy trade will be even more heavily influenced by government involvement. These trends have significance for the direction of international business research.© 1981 JIBS. Journal of International Business Studies (1981) 12, 23–28