Oil for International Business

This world runs on black gold (Courtesy of HowStuffWork)

When I was applying to Wharton for my undergraduate studies, I did thought of taking international business as a double degree to complement the course I was intending to study. Since this is old news, it didn’t cross my mind again until a few days ago when the Malaysian government announced a shockingly huge hike in the price of fuel. I still remember the time when petrol was just RM1.20 a liter a few years back when it skyrocketed to the RM2.70 a liter today.

It makes me wonder, is it a sign that fuel is running out? Or that global demand has exceed what global production can usually supply. How will the world market be when the world’s oil depository dried up in the next twenty or thirty years in the future. Will the term international business still hold at that time when there is no fuel to allow the mobility of goods. Then, does comparative advantage has significant benefit over the cost of transporting the goods. Can the airlines still function to carry all the executives around the world? I shudder to think of how our world will be like when it runs out of oil.

I believe those at Wharton or any other school who intend on international business are taking a gamble for themselves with the uncertainty of the availability of the black gold. Perhaps, there will be alternative fuel or the world will revert back to coals and wood. However, wealth and luck usually side with those who took risk. After all, the global market is still the most lucrative stage there is today.