The second of two works resulting from the author's extensive study of energy and the world economy, this book examines the international macroeconomic aspects of energy adjustment. Specifically, the author analyzes the ways in which economies adjust to external shocks, particularly the oil price shock and other energy market changes of the 1970s and early 1980s. He seeks to put the recessions experienced by industrial countries during the last decade in historical and analytical perspective, arguing that with the increasing openness of the world economy, the effects of the domestic policies of the industrial economies are increasingly relevant to the economic prospects of developing countries. He argues further that the apparent problems of the global economy during the post-1973 era--stagnant growth, inflation, the international debt crisis, and rising protectionism--are in part the result of a deterioration in the economic performance of industrial countries.

The author begins by examining the effects of energy supply disturbances on the world economy. Subsequent chapters explore such issues as challenges to economic stabilization policy; the impact of external shocks on the economies of less developed countries, especially with regard to inflation and balance of payments problems; the relationship between world payment imbalances and recycling problems; and the link between energy markets and the international debt crisis. Finally, the author provides a theoretical framework for the international adjustment to energy shocks, focusing on flexible exchange-rate policy responses to exogenous shocks in the 1970s and the contribution of exchange rate misalignment to the international debt crisis of the 1980s.

An important contribution to the economic literature, this book provides a systematic analysis of the problems of economic growth and stability presented by the changing role of energy in modern economics. The result of a massive study by the author of the effects of energy and energy shocks on the world economy, the volume is organized around the theme that energy is an integral feature of the economy and that any interpretation of short-term movements in economic activity is likely to be seriously at fault if it neglects energy supply changes and their repercussions. The author takes both an historical and theoretical approach to the subject, providing students and scholars of energy economics and political economy with a logical framework within which key worldwide energy issues and problems can be analyzed.

Following an overview of the nature and roots of the energy crisis, Tsai examines the economic aspects of complex contemporary energy issues and problems. He provides a valuable introduction to the technological characteristics of energy, explores future prospects for world energy supply, and offers a synopsis of key elements of U.S. energy legislation. The theoretical and empirical underpinnings of energy-economy interactions and the application of microeconomic techniques to the analysis of energy resources also receive thorough treatment. With the knowledge gained from this book, the reader will be well-equipped to make sound economic judgments concerning energy issues.

Information technology matters. The formulation of business models and strategies is likely to be seriously flawed if it neglects new technological changes and repercussions. Information technology and organizational learning are both critical to attaining and sustaining competitive advantage. Based on these premises, and on the increasingly evident obsolescence of the traditional, hierarchical business model, the author takes an integrated approach to the discussion of organizational learning, new value propositions, supply-chain optimization, e-commerce, new perspectives on business process reengineering, collaborative business models, globalization of business, and the continuing trend toward virtual integration.

This book is not another tired exhortation to take advantage of technology to improve corporate performance. One cannot utilize technology to its full potential without also overhauling the rigid, hierarchical business model that was designed for the command-and-control corporate environment of the industrial era. Tsai takes a comprehensive view of everything that needs to be done in order to make the most of emerging technologies. The new information economy calls for companies that foster strategic collaboration through a more horizontal organizational structure. A more synchronized supply chain yields better customer service, higher quality, faster delivery, and lower inventory. In the customer-centric environment, a new value proposition is essential. Business processes must be fast, focused, flexible, responsive, and nimble. With the knowledge gained from this book, one should be able to face the future with an ability and capacity to discern technology policies and make decisions concerning strategic positioning and competitive business strategy.