Economic Impact of Natural Disasters on Businesses (Research Paper Sample)
Natural disasters have been increasing in frequency and intensity due to climate change for the last four decades. From 2019 to 2021, there were 56 climate and weather events in the United States that cost an average of $105.1 billion per year in damages. Among the most affected by catastrophic events are businesses that spend colossal sums of money on infrastructure and operations. Economic consequences of natural disasters can be classified as either direct or indirect. Direct consequences refer to damages caused directly by a natural disaster. On the other hand, indirect losses refer to changes in economic activities that follow the disaster.
source..
Economic Impact of Natural Disasters on Businesses
Name
University
Abstract
Businesses in disaster-prone areas experience many challenges related to adverse climate and weather events. These challenges can be classified into direct and indirect consequences. This research paper explored the economic impact of natural disasters on businesses. As natural disasters increase in frequency and intensity due to climate change, businesses in disaster-prone areas are exposed to serious economic consequences of adverse weather events that may threaten their existence. Currently, more than 25% of businesses do not recover after a natural disaster. The number of business failures post-disaster may increase if proper measures are not adopted to reduce risks. The damages for business vary in their potential and magnitude in a form of immediate losses for the company or indirect consequences due to their disruptions.
Economic Impact of Natural Disasters on Businesses
Natural disasters have been increasing in frequency and intensity due to climate change for the last four decades. From 2019 to 2021, there were 56 climate and weather events in the United States that cost an average of $105.1 billion per year in damages (National Centers for Environmental Information, 2022). Among the most affected by catastrophic events are businesses that spend colossal sums of money on infrastructure and operations. According to the Federal Emergency Management Agency (FEMA) (2018), at least 25% of businesses do not reopen after adverse weather events due to a lack of emergency disaster plan to reduce risk. This research paper discusses the economic impacts of natural disasters on businesses.
Economic consequences of natural disasters can be classified as either direct or indirect. Direct consequences refer to damages caused directly by a natural disaster (Botzen, Deschenes, & Sanders, 2019). Direct losses occur at the time of the disaster or immediately thereafter, which can then lead to indirect losses. On the other hand, indirect losses refer to changes in economic activities that follow the disaster (Botzen et al., 2019). The interruptions in economic
Other Topics:
- Importance of Product Development Chain Audit for CompetitivenessDescription: Tao, Liu, Xie, and Javed (2021) assert that a product development supply chain audit comprises a thorough, objective analysis of an existing product strategy and management procedures. Before a good or service can be given to the customer, a set of procedures must be followed. In order to identify ...2 pages/≈550 words| 2 Sources | APA | Business & Marketing | Research Paper |
- The Value of Sustainable Business Practices in the US Hotel Lodging SectorDescription: According to Apollo (2018, p. 363), the Brundtland study, which was conducted in the 1980s, is where the term "sustainable development" first appeared. Although the idea of sustainable development has been adopted by the tourism industry, there is still discussion and research surrounding it. It has been found...1 page/≈275 words| 4 Sources | APA | Business & Marketing | Research Paper |
- The Economy and Infrastructure of IcelandDescription: With the dawn of the covid -19 pandemic in late 2019, the global economic platform is left in extreme shock with literally all Nations going on lockdown and restricting movement in and out of their respective borders, with the entire global economy on its knees, the question that remains is how will we get...21 pages/≈5775 words| 9 Sources | APA | Business & Marketing | Research Paper |
