Another way that natural disasters can affect a business is through the effects it causes on international affairs. The Haiti disaster resulted in a demand for certain products, especially the ones being exported to effected countries will drop sharply as the suffering people could no longer pay for those products. The country may also have been a producer of a component that was manufactured in a different country before disaster struck. Since it no longer can produce its part, the item can no longer be manufactured in a quantity as large as before or not be manufactured at all. As a result businesses will suffer and many jobs will be lost.
Also the communication system in Haiti was severely damaged by the earthquake. Businesses from other countries who deal with commercial establishments with Haiti are unable to communicate to conduct any business. Since it is impossible to conduct any business with Haiti now, it makes it impossible to create revenue outside of the country. This is having a huge impact on Haiti's economy. this information along with more can be found at:
http://www.bukisa.com/articles/229232_the-impact-on-haitis-earthquake-on-the-worlds-economy
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment