Economics

Economics
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Over the years, the scholars in the field of international trade and commerce studies have tried to come up with theories that can explains the different scenarios that take place in these markets. The international markets are quite complex as there are a number of factors that affects the trade in the markets and the companies that are looking to venture into the markets have to oblige. The Lukoil is one of the largest privately owned oil and Gas Company in the world today, producing more than 2.1% of the crude oil found in the global market. Over the last two decades, the company has been rising to greater heights, thanks to the global strategies that it has employed in exploration, production, refinery and marketing. Lukiol directed most of these strategies towards the Russian market and a few other countries that neighbor Russia. The Russian reserves put on the global map, as one of the few countries that still some of the largest oil reserves in the wake of dwindling supplies (Flat World Knowledge, 2014). The company forerunners so the opportunities that lies within Russia and took it up, making one of the best decision that they made. The combination of the strategic company in a country that produces most of the oil that is use in the neighboring countries and the world over is paramount to the level of success the two entities have enjoyed for decades.
One of the international trade theories that can explain the Russian oil, the market and Lukoil, is the National Competitive Advantage. One of the key elements that support this theory is the fact that Russian has huge oil reserves compared to all of its other neighbors. The oil reserves are natural resources that put Russia on the global map atop all of the neighbors ('Competitive Advantage - The Drive for International Trade', 2014). When combined with the fact that Lukoil has advanced in its ability to explore, produce, refining, marketing and power generation...