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  • Essay / Global warming and its economic effects on businesses...

    Have you ever wondered why every year there seem to be more major natural disasters than in previous years? What about the increase in prices of products such as food, clothing and rubber materials? Ironically, natural disasters and rising prices go hand in hand, even though they go unreported to most countries around the world. However, it is global warming that is causing these natural disasters that affect businesses and ultimately affect their consumers as well, in one way or another. In the book GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector, written by Grossman, David explains how everything we consumers and businesses buy contains a main ingredient from a natural resource, such as metal and cotton. Because of the depletion of supply due to global warming, it affects businesses to get supplies, to meet consumer demands, and from there it affects a vast majority of things within businesses. Therefore, so that businesses can meet the demands of their consumers. , they need these natural resources to exploit, produce, supply and market their products. However, this all starts at the very foundation of the natural resources available for businesses to operate, such as electricity, timber, crops and water. Businesses depend on these resources to operate, the business sectors the book focuses on are: building, construction, chemicals, electric power, mining, finance, food and beverage, health, information and communication technologies, tourism and finally transport. Grossman says: “Similarly, climate impacts, resource scarcity, and resulting changes in population migration can have broader systems-level effects, destabilizing countries and consumer relationships, they just prepare in advance. Grossman says it best: “Across all sectors, and in multiple ways, the impacts of environmental change on businesses are numerous, significant, and imminent.” He then explains how companies that face challenges and anticipate can avoid problems, “across many industries and geographies – gain a competitive advantage by understanding environmental trends and taking action” (Grossman, D. p. 45).ReferencesGrossman, D. (2013). GEO-5 for the business impacts of a changing environment on the business sector. na: United Nations Environment Program. Master, N. and Samiti, L. (March 21, 2008). Indian Resource Center - Major protest demands closure of Coca-Cola plant. Major protest demands closure of Coca-Cola plant. Accessed March 21, 2014 from http://www.indiaresource.org/news/2008/1034.html