According to New York Times dated October, the oil sand booms in Alberta Canada is reported to have dried up leaving thousands jobless. An oil spring which hosted more than 2000 workers cannot continue to sustain them. The issue is related to international business because the price of oil in the global market is currently declining (Ian, 2015). Given the capital intensive projects Oil sands Boom in Alberta has invested in, the company continues to lose more. The impact has therefore forced the company to fire the workers as it cannot continue with the process of oil mining. The work aims at illustrating how the drying up of the oil springs in Alberta Canada is related to international business and globalization.
The drying up of the oil springs in Alberta Canada is an international and globalization issue because oil is a commodity used across the globe (Daniels & Sullivan. (2013). The price of oil in the global market is controlled by a global body rather than a single country like Canada. Since the prices of oil over the last one year have been declining, it has become difficult for most oil mining to continue with the mining process as the cost of operation is more that the companies are getting from the sales. The issue of Oil Sands Boom Drying Up in Alberta relates to chapter one “Globalization and international business” in the DRS text book.
In conclusion, given the severe economic times being experienced in Canada, the growth of most industries seems to be declining. Most oil companies which had invested heavily in oil sands especially in Alberta are shutting down (Ian, 2015). The business owners are now forced to close the oil business until the time the price of oil will be sustainable. The extra-ordinary boom in the last fifteen years had attracted the largest oil companies into the industry forcing them to invest heavily but they are currently suffering from the oil price volatility being experienced across the globe.
References
Daniels & Sullivan. (2013). International business.(15thed). New York publishers.
