Disasters overall affect to business

The green team has shown how disasters affect the business as a whole and the effects it causes to its people.Disasters can be devastating to businesses. Short term losses may include physical damages to premises and contents in addition to revenue loss due to interrupted service, and a loss of wages for temporarily displaced employees. Long term economic impacts could include the complete loss of the business resulting in a loss of jobs and a weakened economy in the local community. This can be especially problematic where a community may only have one major business that provides employment for much of the population.

Business owners have a duty to their employees to insure a safe workplace. This includes taking appropriate steps to be prepared to deal with any potential emergencies or disasters that might impact the workplace. Developing a good plan first entails assessing the risks to your business. What hazards either natural, manmade, or technological could impact your business? What is the probability of certain hazards occurring? What impacts could they have? Answering these questions will aid you in developing an appropriate contingency plan. Assessing the potential impacts will also help justify the cost of developing a contingency plan.

We as the green team have outlined the overall effects of disasters related to business. We did the blog on behalf of NAIT as a institution to educate us on the way disasters can cause a difference in business day to day activities.

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How droughts affect production

The technology and supplies that are used in the production of goods and services are affected. In the case of a drought, for example water for crop growth and irrigation is lacking, which reduces the amount of crop being produced. To understand the aftermath of a great natural disaster in its entirety, however, the fundamental principles of economics must be evaluated. First, when a disaster occurs, it affects production, or the amount of outputs per measure of input. This makes sensebecause the means through which widgets are produced—natural, human, and capital resources—are all being affected. For example, when a hurricane damages a city businesses within that city will not be able to continue functioning because they have lost the tools, machinery, and manpower through which they do so. So, during and immediately after a disaster takes place, production will be halted.

small businesses affected by haitian earthquake

When haiti earthquake happened this caused small businesses to go down and since the affected ones needed supply this caused alot of shortages in the basic human needs.
Port-au-Prince has been devastated by the earthquake of January 12. However, as aftershocks continue to rattle the small Caribbean nation, there are similar aftershocks shaking up small businesses around the world that depend on Haitian goods. With factories flattened and the ports closed to all but incoming emergency shipments, global businesses are scrambling to find replacement suppliers for the fruits, vegetables, textiles and other commodities that are not getting out of the country.

U.S. importers of mangoes, Haiti’s number one commodity, are worried that the facilities where mangoes are processed have been destroyed. The mango season starts in April and continues through August; the fear is that necessary rebuilding may not be completed in time to salvage the fruit. This would impact the U.S. produce and restaurant markets. Importers are starting to look to other Caribbean nations, such as the Dominican Republic, to guarantee an uninterrupted supply.

Peppers, another major export crop, may also be in short supply. Brooks Pepperfire Foods, in Quebec, Canada is waiting to find out if it can expect its semi-annual shipment of goatpeppers, the main ingredient in one of its most popular products, Hurricane Mash. Although these specialty peppers are grown in other parts of the Caribbean, Pepperfire Foods claim the Haitian-grown peppers have a richer flavor essential for manufacturing of their hot and spicy products.

While many small business owners are discovering Haitian imports in short supply, others find that their regular customers, members of the Haitian community, are so upset about Haiti’s state of affairs, that they are not spending money.

Affects on Tourism

Tourism is greatly affected by any natural disasters. One example of this is the affect that Hurricane Katrina left on New Orleans in 2005. It left more than 80% of New Orleans underwater and it also blew away the state’s biggest state of revenue - tourism. This in 2004 drew more than 10 million tourists and also created 80,000 tourism related jobs. Hurricane Katrina caused a major downfall in new Orleans economy And this is just one specific example. Almost any major natural disaster will have a large affect on tourism.
further information at:

http://www.acs-aec.org/Disasters/CANREDES/English/An.%20X%20en.pdf

How natural disasters effect bussines economy

How economy changes when earthquakes, hurricanes,floods, and so on wreak havoc on a region's economy by causing catastrophic loss of life and loss of valuable resources, such as food, water and housing. Extremely violent storms or geological events like earthquakes and volcanic eruptions can wipe out bridges, roads and destroy rail and airport systems, disrupting commerce.

Natural disasters also spur inflation. Prices for many commodities, such as food, lumber and other building materials, often soar after a natural disaster causes widespread destruction. In the weeks after Hurricane Katrina hit the Gulf Coast, prices for lumber, panels and particle board soared by as much as 50% and remained high as demand for rebuilding materials competed with demand from the country's already overheated housing market.

Creating a whole sector.

Just the fact that natural disasters occur actually creates a whole sector of the economy. Due to the fact that most natural disasters are re occuring in certain areas, such as tornadoes in the central US, earthquakes along fault lines, and hurricanes in the Carribean, these areas have industries soley to prepare for upcoming disasters. In certain areas disaster proofing homes, by modified foundations and structural designs, has created a new type of industry in house production. As well natural disaster preparedness has increase sales of related stock supplies, such as medical supplies, water purification tablets, and fuel for generators. This creates the need for a whole new sector of the economy, while promoting already existing industries by creating derived demand for their supplies, such as building supplies. For information on a company in California doing this I have attached the following link:

http://www.californiaacontractor.com/