The Lifeblood of the World's Economies - Assignment Example

The Lifeblood of the World's Economies The frequent brownouts or prolonged breakouts do affect the sales of electrically powered products. A major part of the electricity generated every year goes to power electrical appliances at home such as televisions, computers, kitchen appliances, etc. Sudden breakouts do affect the performance of the electrical appliance. Fluctuating voltage, which is the result of this sudden breakout, does cause lower operational efficiency in electrical appliances. These frequent brownouts and prolonged breakouts affect the electrical appliances in a way that it increases the losses of the buyers, changes in power and torque, hunting and causing premature wearing of the router. These breakouts may also produce defective parts in automatic or computerized machines and it also causes unwanted triggering of the units of UPS that leads to switching battery thereby causing the malfunctioning of the security system and inconsistency in the speed of the motor. All these defects that occur as a result of frequent brownouts and prolonged breakouts increase the after sale service cost of the electrical appliances which ultimately increases the overall cost of the machine. It is not always the case that the machine damage that is caused by brownouts or breakouts to the electrical appliances isn’t repairable. Many times the damage is beyond repair. There are times when the cost of the repairing the electrical appliances are same as the cost of machine and it is then that the users are forced to purchase the machines again. The after service cost of electrical appliances that increases as the result of frequent brownouts and prolonged breakouts is a loss for the overall economy as it increases the total maintenance cost of the product, reducing its useful life and affecting the operational efficiency of the equipment [ CITATION Glo13 \l 1033 ]. How much powers will India need in five years (consider current population, population growth rates and current electricity/power consumption)? India and China are two of the top consumers of coal. China currently is planning to build the world second largest dam to fulfill the increasing energy demands of its people. India is currently taking effective measures to meet the demand of the electricity that will be consumed by the people in the future years. The electricity consumption of India as recorded in 2013 stood at 233.929GW, which is considered to the world’s fourth largest amount of electricity consumption. In the recent years the demand of energy in India has over far outstripped the availability of energy in the country. The base load requirement of India in the year 2013 was 861,591 (MU) whereas its availability was 788,355 (MU). India in the previous year faced an electricity deficit of 8.5 percent. During the time of peak loads the demand was as high as 122 GW, whereas the units available were around 110 GW which recorded the shortfall of 9.8 percent [ CITATION Lis12 \l 1033 ]. The GDP of India is growing at a fast rate. The increased energy intensity of GDP follows a certain increased growth trend worldwide. The energy requirement of India is increasing as the development in the country increases. As the economy of India grows further its energy intensity eventually starts declining. Based on the projections of growth rates the per capita electricity generation would be about 5300 kWh per year. Electricity generation in India in the year 1947 and 1948 was 4.1 billion kWh whereas in the year 2002-2003 it increased to about 600 billion kWh. Considering the records of the past years and seeing the growth of the Indian economy it is necessary to boost the power plant sector and the target the generation of electricity to be about 8000 million kWh per year in the coming five years [ CITATION Ele13 \l 1033 ]. How would intermittent power access like that in India and other part of the world affect sales of electrically powered products? The trend in the prices of intermittent energy sources declares that solar and wind operators must sell their products in bulk as well as at low prices. The intermittent energy is not generated through costly means and it is probably generated by the help of wind or solar energy, which is consider to be the cost effective mean of generating energy. The demand of products that run through intermittent power is increasing day by day. The only drawback in this product is that the intermittent source of energy is not available all the time and there are other alternatives means by the help of which the products can be run. Running the product through intermittent source of energy is quite cost effective procedure for the customers and therefore such products have grasped the attention of a vast market segment and affected the sales of electrically powered products. Entrepreneurs and businesses who attract more customers and sell more products are the ones who stick to more value added processes. They usually view users as agents and include them in processes such as transformation, production and distribution processes but the only condition is that the entrepreneurs and businesses must be successful in the development of promising social business for the customers [ CITATION Ren13 \l 1033 ]. There are vast opportunities for many companies in developing markets. What can companies do to help developing nations plan for the infrastructure needs associated with economic development? Economic growth is considered to be an important mean of raising the income of people and reducing the level of poverty that persists in a developing country. It not only creates new jobs for people but it also allows families to build a stable future for them. International organizations as well as government institutions may play a major role in the economic development of a country or region The participation of the private sector in the economic development of any country is considered to be critical as they may play a significant role in providing funding, expert advice and implementation of policies that are necessary to build complex infrastructure projects. The role of government is to act as entities that sponsor certain infrastructure development projects in the country and bid out the contracts to other international and local companies. Private companies work with other businesses, government and investors in different countries (particularly in the developing ones), strengthen the business environment of that particular country, and increase the access of people to the financial services and work to improve the infrastructure of that particular country. Companies in order to develop the infrastructure of a country invest in things like transport, electricity generation projects, providing qualitative services to people and water supply projects. They work in collaboration with the other countries and regions and help the country to unblock problems regarding the infrastructure. Companies also fund some private infrastructure development projects taking help from private investors, which help to provide a better infrastructure to the country thereby increasing the performance of the overall economy. Private companies may also lend a hand in the development of the country’s infrastructure by supporting activities that are responsible for carrying out operations that help in improving the overall conditions of life. Private companies may work to increase the living standards of the poor and of the people working in farms and factories. Improving the working conditions in countries such as Lesotho, India and Bangladesh may also eventually leads to improvements in the living standards of people. Companies investing in the infrastructure development projects not only help the society but also provide benefit to other businesses in the long run [ CITATION Jas12 \l 1033 ]. Work Cited CITATION Glo13 \l 1033 : , (Global Offering- Report), CITATION Lis12 \l 1033 : , (Friedman), CITATION Ele13 \l 1033 : , (Electricity Demand Projection), CITATION Ren13 \l 1033 : , (Renewable Energy and Electricity), CITATION Jas12 \l 1033 : , (Jason), Read More