Question

In: Economics

Please refer to CONCEPTS and THEORIESs in the global business context and real world example(s) from...

Please refer to CONCEPTS and THEORIESs in the global business context and real world example(s) from the course.

Q4. Use examples to illustrate what is decoupling . Why is decoupling an urgent concern? Describe the relationship between Decoupling & the Green Economy. What is the major obstacle faced by decoupling?

Q5. Describe and discuss 4 kinds of ethical issues in business . Discuss the Stages of Moral Development (Kohlberg’s theory) .

Solutions

Expert Solution

Q4)Decoupling takes place when different asset classes which usually moves together ie they rise and fall together statrs moving in the opposite direction ie one increasing and the other dereasing.Eg oil and natural gas prices rise and fall together . Decoupling takes place when oil moves in one direction and gas in the opposite direction.

Different resurces are now reaching the productive limit and as a result poor quality iron ore is mined and there is rise in prices .Thus resources in the economy should be used efficiently in order to maintain sustainabilty by lessening environmental an economic costs of depletion of resources.An international policy is required as the global impact on the environment is increasing and is becoming a serious problem.So decoupling is urgent.

Even though decoupling is necessary and useful and has taken place many times, it is not possible that green growth will reduce the use of resources in order to control  environmental issues and reduce global warming below the target level of1.5 degree above pre industrial level..   

One major obstacle faced by decoupling is called 'rebound effect' which states that gain of efficiency in resource use may lead to more use of other resources. .


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