Regular or operational disasters will have serious negative effects on many businesses. Natural disasters include wildfires, floods, earthquakes, hurricanes and other similar events. Disasters occur when associations lose a challenging manager or leader, or even when business contracts are broken or the business environment proves to be truly difficult to run a business. Large organizations may be more affected by disasters than small organizations because they need a lot of accessible resources to restore their operations. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original Essay Japan's massive earthquake and tidal wave have driven home the point that despite advances in construction and infrastructure, we are all subject to the notions of Mother Nature. In today's increasingly interdependent economic context, the economic consequences of a natural disaster are not relegated to the geographic area it hits. In fact, even natural disasters that occur thousands of miles away will wreak havoc on your wallet here. Besides the loss of life, the destruction of infrastructure is by far the most obvious form of damage that concerns us when we rely on natural disasters. After all, old-time television news created images of broken homes and omnipresent businesses after almost every earthquake or tornado that occurred. But the economic consequences are rarely considered beyond the price to pay. This is a major problem for victims of natural disasters, as it is the economic fallout that leaves some of the most lasting scars. One of the most significant problems in regions affected by natural disasters is business disruption. With damage to roads, communications infrastructure and buildings during major disasters, it is not uncommon for local businesses to collapse for a period of time after aftershocks subside. On a large scale, that's what happened when Hurricane Katrina ravaged the coast in 2005: As businesses reeled from damaging losses, dozens of employees from Pelican State, he U.S. state and Mississippi found themselves unemployed, compounding the region's already staggering poverty problem. . This mass state has been accompanied by a drastic reduction in customer spending and – therefore – tax revenues needed to support reconstruction efforts. What's more, the international impact was particularly felt across the energy sector, as oil prices soared due to the destruction of drilling rigs and refineries. In places where significant parts of the country have been decimated by disasters, governments have generally been left with very little recourse; With the return of a fraction of their former taxation and the deterioration of the quality of sovereign credit, economic aid becomes an absolute necessity. But these factors only influence how much control a natural disaster will place on investment portfolios around the world. With the recognition of ADRs, ETFs, and alternative styles of international investment diversification, the power of U.S. investors to own shares of companies based primarily overseas has grown significantly over the.