Global Business Environment - Assignment Example

GLOBAL WARMING AND ITS EFFECTS ON GOVERNMENT AND BUSINESS PRACTISES Currently, there havebeen many changes in the environment as a result of man’s activities, the global temperatures have risen steadily with many parts of the world experiencing desertification. Many satellite images including research from ecological experts have illustrated that sea levels have risen sharply (Tisseuil et al 2013, p. 70), with future expectation of much similar activity. Global warming can simply be described as general increase in temperatures in the atmosphere. It is estimated that since early 20th Century there has been a general increase in surface temperature by about 0.80 C. Of all this increase, two thirds of it this occurred in the period after 1980 (Garnaut, 2008, p. 56). At the same, there has been progressive scientific understanding into global warming as well as ways that this issue can be mitigated. There have been a lot of international conferences and seminars to educate people on its effects and things that can be done in order to mitigate its effects (Chatham, 2009, p. 34). The Intergovernmental Panel on Climate Change (IPCC) has been active and effective in the study of global warming and its related effects. The panel researched and discovered that global warming is a result of an increase in the concentration of greenhouse gases in the environment and the general stratosphere. Human beings play an important and active role in the accumulation of these gases in the environment through various activities and processes. The report by IPCC explained that of all the greenhouse gases, carbon dioxide was the most prevalent contributor of global warming (Solomon et al. 2009, p. 120). At the same time, other different human activities like deforestation play a big role in the accumulation of carbon dioxide. Forests and vegetation cover usually use the excess carbon dioxide in their photosynthetic processes in a process called carbon dioxide fixation. This means that maintaining forest cover is an important step necessary in checking on the effects of global warming. However, people should try their level best in order to reduce on the energy that is released in the atmosphere (Fullerton, 2008, p. 132), there should be effective and successful environmental campaigns aiming at sensitizing people on various methods of environmental management and conservation Effects of global warming Global warming has been associated with many ecological and social changes, which are felt directly and indirectly by people and other living organisms on the face of the earth. The intensity of the effects have prompted efforts by government and non-governmental agencies to look for ways of reducing and stopping them completely. However, the impacts of global warming have a multiplier effect, meaning that there are very many systems that are affected by this issue. With the economy having to suffer, business activities are affected in equal measure, prompting people to look for other means of managing their lives. Effects of global warming on the economy of world governments The economy of any country thrives on people’s efforts to run different economic activities, when these activities are hampered in one-way or another; it is difficult for the economy to perform successfully. This means that efforts in reduction of these effects do not just benefit ecological and environmental systems, but social and economic systems as well. Some of the effects witnessed include loss in the productivity; this is due to disruptions in the normal economic activities of people. These disruptions include reduced agricultural activities, energy production, fishing as well as trade. Severe rainfall seasons and snowstorms have been seen to delay planting time for farmers, cause energy outages as well as traffic snarl-ups making it impossible for people to carry on with their daily economic activities. At the same time, climate-related health risks reduces general productivity, for instance, extreme heat hampers building and construction efforts, at the same time, potent allergies arising from these effect leads to loss of work and reduced school days. Effects of global warming are usually felt in different magnitudes by different countries, while some countries suffer huge losses, some face moderate and average losses. For instance, in Canada, a country that largely depends on natural resources for its resources has been facing huge problems; the rising ocean temperatures on the West coast of the country have reduced fishing prospects. The increased temperatures have reduced the breeding of Salmon, a common fish species that people depend on for business. At the same time, spawning fish species have also been migrating to other parts of the sea. Since most of the people in this area depend on fishing, the reduced fishing grounds mean that overall economy of Canadian government is affected in equal measure. At the same time drought, which is a major effect of global warming, has caused the Canadian government huge losses. In 2001, prairie drought is estimated to have cost the government a total of about $5 billion in agricultural losses; this is from statistics given from a study conducted by University of Manitoba. It is therefore important to note that many governments are continuing to suffer in varying degrees from the effects of global warming. British Columbia has not been spared either, in the recent past; the country has been greatly affected by the mountain pine beetle, which is known to thrive in the unusually mild winters. Information from the Ministry of Forests and Range in British Columbia showed that as of 2012, there was an estimated area of about 181, 000 sq kilometers that had been affected (Semenov, 2007, p. 130). This was a huge loss since the demand for these trees would have given the government billions of dollars in revenue. Many of the losses that are suffered by governments are huge and may not be fully accounted for in full. However, a general understanding is that global warming presents huge financial and non-financial losses to various sectors that are huge economic importance to any government. Economic losses arising from natural catastrophes are likely to trigger effect of climatic change and in more extreme measures as time slowly progresses. Effect of global warming on businesses Global warming has been having a great impact on different kinds of business, this is through the challenge it presents on effective implementation of certain strategies and approaches to enhance business performance. With increased attention by governments and non-governmental organizational about global warming and its projected impacts, there is a possibility that new regulations created to limit the amount of energy released in the environment may affect business’ strategies (Sajjad, Coulibaly & Dibike, 2006, p. 340). Even when some of these regulations may not directly affect small business, they may likely affect their suppliers and customers. The challenge has a multiplier effect, meaning that small business have to feel the effects through increased costs of materials, supplies as well as products and services that they buy. New regulations for proper business practices in the wake of global warming sometimes mean that there are greater restrictions and costs. But at the same time, they could be a blessing in disguise by presenting new opportunities for creating of certain goods and services that appeal to the these conditions. There are businesses that have ended up developing lotions to reduce the effect of U.V rays from the sun, while building and construction companies have profited from development of building materials that insulate heat in houses as well as other forms of energy. Climate change Companies that have assets that can be adversely affected by changes in the climate are supposed to make important planning into how they can avert or reduce or cope with the catastrophe when it arises. Some of the climatic changes which affect these businesses include heavy and strong storms, prolonged drought conditions as well as heavy precipitation and flooding in these areas (Dore, 2005, p. 89). When such catastrophes happen, the companies suffer millions of money because insurance companies are sometimes unable to compensate the particular companies. The agricultural sector suffers heavily in equal measure, farmers in areas that experience drought conditions are forced to move to new areas that are quite favourable in order to manage their agriculture (Karamouz, Imen & Nazif, 2012, p. 340; Lawless & Semenov, 2005, p. 320). In different countries, agribusiness has been the largest affected sector because farmers have been forced to content with drought that has affected crops and other horticultural products. Agriculture is the cornerstone of the economy of many developing countries, when it is affected, these countries are worst affected. This has been a common occurrence in many parts of Africa and Asia; most of the countries have had to rely on foreign aid in order to feed their citizens. The search for alternative means to cope up with the effects has seen famers changing the economic activities to try new approaches that do not rely on agriculture. At the same time, businesses that thrive in the tourism industry have been heavily affected by storms that have led to a decrease in the number of people to tour these areas. In addition, the prevailing drier and warmer conditions in the mountains have the potential to harm business related to skiing and other related sports (MacDonald et al 2012, p. 3060). A more sensible way to face the potential risks because of global warming is to make an effective analysis of the risks and opportunities associated with global warming. This can be through observation of market trends, listening to people’s opinions and perspectives as well carrying out effective market research. The business may have to change its goods and services if the effects of global warming can affect the current productions. Alternatively, the business may choose to adhere to the new rules and regulations if only they can manage to have competitive advantages (Eskin & Salmon 2010, p. 103). The problem of global warming is real and affect different economic sectors either directly or indirectly and thus not good for economic empowerment. The governments have been putting forth regulations aimed at reducing the impacts of global warming on the nation and this has gradually affected business operations. Since the challenges emerging from global warming are felt everywhere across the globe, combined effort by the diverse government are necessary to ensure it is completely addressed. Bibliography Chatham H. 2009. International Affairs, Wiley Blackwell, New York. Dore M. H. I 2005. Climate change and changes in global precipitation patterns: what do we know? Environ Int Vol 31, No. 2: pp. 1167–1181 Eskin, P. & Salmon R, 2010, Making Reform Happen in Environmental Policy, OECD Publishing, Michigan. Fullerton, D. 2008, Distributional Effects of Environmental and Energy Policy, University of Illinois, USA. Garnaut, R. 2008. The Garnaut Climate Change Review, Cambridge University Press, Melbourne. Karamouz M, Imen S, & Nazif S 2012, Development of a demand driven hydro-climatic model for drought planning. Water Resour Manag Vol 26. No. 2: pp. 329–357 Lawless C, & Semenov M. A 2005. Assessing lead-time for predicting wheat growth using a crop simulation model. Agr Forest Meteorol Vol 135. No. 6: pp. 302–313 MacDonald R. J, et al 2012. Modeling the potential impacts of climate change on snowpack in the North Saskatchewan River Watershed, Alberta. Water Resour Manag Vol 26. No, 3: pp. 3053–3076 Sajjad K. M, Coulibaly P & Dibike Y. 2006. Uncertainty analysis of statistical downscaling methods. J Hydrol Vol 319. No 5: pp. 357–382 Semenov M. A. 2007. Developing of high-resolution UKCUP02-based climate change scenarios in the UK. Agr Forest Meteorol Vol 144. No. 7: pp. 127–138 Solomon, S., et al. 2009.  Irreversible climate change due to carbon dioxide emissions. National Academy of Sciences, Washington. Tisseuil C, et al 2013. Statistical modeling of future lake level under climatic conditions, case study of Urmia Lake (Iran). Int J Environ Res Vol 7. No. 1: pp. 69–80   Read More