Natural Disasters and Business Worldwide, Research Paper Example

How does global warming/natural disasters affect business worldwide?

Abstract

Scientists have reported that the net temperature of the Earth has been on the rise for the past several decades. Global warming is a natural process that is intensified by manmade contributions in the form of greenhouse gasses. However, it is important to consider that not only does global warming impact nature and people, it also impacts economies and business. When people are displaced because of global warming, funds are removed from the economy. Thus, demand for many products decrease, impacting the profitability of many organizations. Furthermore, governments across the world will need to focus their spending on social programs to provide for displaced individuals, which will take away from their ability to provide support to corporations. Last, it is likely that taxes on businesses will rise due to the need to gather funds to provide aid to this effort. On the other hand, investing in organizations, products, and services that are able to reduce the impact of global warming will help contribute to a more sustainable future. Thus, to counteract the negative impacts that global warming has on business, it is necessary to take action to prevent this occurrence.

Key Words:  global warming, business, trade, economics, green technology, green investments

Research Questions

It is imperative to determine how global warming will impact the local and world economy. Many people claim that global warming should be ignored because investing in green products are costly. However, it is also necessary to determine whether investing in products that lessen the impact of global warming could contribute to the preservation of the economy.

Literature Review

Studies have shown a remarkable connection between global warming and unemployment, which will ultimately damage portions of the world economy (Kahn et al. 1). As sea levels continue to rise, the borders of currently existing countries will continue to change, chasing many residents from their homes, damaging farm land, and changing the lifestyles of the individuals living in surrounding populations (Barnett et al. 303). Once we must deal with the mass migration related to rising sea levels, we must also consider that many people will lose their jobs that were tied to these areas. Furthermore, there will be greater competition for jobs in areas that are not impacted by the sea level rise, but will become a new home for these refugees. Many of the individuals living in these areas will no longer be able to acquire the luxury products that drive our economy. Instead, they will need to focus on finding food, clothing, and shelter, a feat that the government may have to intervene in and provide assistance.

Interestingly, as threats of unemployment increase, people tend to think less about the impacts of global warming on their country and environment. Instead, they are focused on determining how to improve the availability of jobs (Kahn et al. 2). However, it is important to emphasize that these concepts are linked. Global warming leads to a decrease in the availability of jobs, so the best way to preserve jobs and create new jobs is to invest in technology that will reduce the rate of global warming. Other studies have shown that economic damage is also avoidable at the hands of global warming because the changing environment will make trade more challenging. Currently, the United States conducts extensive trade with countries like India, Bangladesh, and China (Choi et al. 149). However, since all of these nations are surrounded in whole or in part by water, they will fall victim to the altered border problem. As a consequence, their production will not be sustainable in a manner that is able to satisfy organizations in the United States. This will impact trade because there will be less product available and there is the potential that companies will remove business with these countries altogether due to their need for quick and effective mass production (Desmet et al. 16).

In spite of all of these troubles, it is apparent that some business leaders deny the credibility of global warming (Tamny 1). This is problematic because if executives continue to deny a scientific consensus, it is they who will be hurt along with other members of the public. Furthermore, it appears that they are in a unique position to analyze the damage that will be experienced as a consequence of this event and put structure in place to prevent human suffering.

Hypotheses

It is expected that global warming will impact the global economy due to decreased trade. Many countries will suffer negative consequences at the hand of rising sea levels which will impact the health of their populations in addition to prevent some individuals from acquiring the basic necessities that they need to survive. Thus, not only will production be more challenging during this time, the focus of many countries will be placed primarily on the survival of their citizens. Next, it is beneficial to determine whether investing in green products can help slow done some of the impacts seen as a consequence of global warming. First, it is hypothesized that doing so will create more jobs to help counteract the job loss from this situation. Second, it is hypothesized that investing in green technology will prevent the continued observation of global warming. Third, it is plausible that this level of innovation will contribute to the development of technologies that could reasonably reverse the effects of global warming.

Methodology and Data Collection

To conduct this research, a review of the literature and business blogs will take place to gain an academic and personal understanding of the impact of global warming in business. Academic databases will involve a search of Google Scholar, focusing on peer-reviewed journal articles from year 2011 or later. Search terms will include “global warming”, “business”, “green”, “trade”, and “investment”. Online business periodicals such as The Wall Street Journal and Forbes will be considered for the personal opinions of its contributors. Evidence gathered will be of a qualitative nature. Opinions regarding the impact of global warming on business will be collected.

Discussion

It is expected that the results will show that global warming has a detrimental impact on business by reducing the reliability of trade deals and shifting the focus of governments in a manner that detracts from economic support. It is therefore valuable to anticipate these reactions and determine how business can be maintained during this period of time. It is necessary to focus on the preservation of life on this planet, despite the difficulties that global warming causes. However, it is also important to emphasize the value of maintaining the economy to ensure that further environmental protection is possible. It appears that the best way to do so it to immediately begin investing in green technologies. This will allow new jobs to be created and for a sustainable plan to be put into place to help the countless people that will be impacted by the sea level rise. While it is also necessary for governments to establish a plan to determine how they will help their citizens, investing in green technology is a move that companies can begin immediately and begin seeing the profits from in the near future. Thus, it is important for managers to determine what green initiatives they can put into place with regards to their current manufacturing processes or determine how to recreate already existing products in a more environmentally friendly manner.

Conclusion

It remains necessary to explore the impact that global warming will have on business and the economy. It is expected that without taking immediate action, the rising sea levels will have a negative impact on trade due to decreased human welfare. However, corporations can prevent a crisis by understanding the potential impacts of global warming and immediately taking action to invest in greener manufacturing and products. By doing so, we can create a world that will be able to support the population for a longer period of time and uphold the lifestyle that modern humanity has grown accustomed to. It is our ethical responsibility to enact change and protect the economy in order to save the lives of people around the world. Individuals that analyze global warming do not typically think of the connection that exists between science and business, so it is important to emphasize the need for the recognition of this link to exist to ensure that change can occur.

Works Cited

Barnett, TP; Adam, JC; Lettenmaier, DP. “Potential impacts of a warming climate on water availability in snow-dominated regions” (abstract). Nature 438.7066(2015): 303–309.

Choi, Onelack, Fisher, Ann. “The Impacts of Socioeconomic Development and Climate Change on Severe Weather Catastrophe Losses: Mid-Atlantic Region (MAR) and the U.S”. Climate Change 58.1(2015): 149–170.

Desmet, K., Rossi-Hansberg, E. “On the spatial economic impact of global warming”. Journal of Urban Economics 88(2015): 16-37.

Kahn, M.E. “Business Cycle Effects on Concern About Climate Change: The Chilling Effect of Recession”. National Bureau of Economic Research 2.2(2011).

Tamny, J. Global Warming Hype Is Mocked By The World’s Most Powerful Market Signal. Forbes. 2015. Web. 4 November 2015. <http://www.forbes.com/sites/johntamny/2015/03/15/global-warming-hype-is-mocked-by-the-worlds-most-powerful-market-signal/>