Does Natural Disaster Affect International Trade?

A natural disaster has the capability to cause large scale damage and destruction to an area. Seismic events have been known to alter landscapes and affect the livelihoods, health and development of communities. No two earthquake events are the same and the level of threat posed by an earthquake can vary due to both the human and physical factors of an area. The 2010 magnitude - 7.0 earthquake that occurred in Haiti is an example of where a natural disaster caused a previously vulnerable area to suffer tremendous loss and debilitating socio-economic impacts, to an already poverty-stricken nation.

In the last century, there have been approximately 13 hurricanes to hit the United States’ landfall (Citation). Many of these hurricanes don't only have a social impact, but also have an economic impact on the United States. However, the question is how impactful does a natural disaster have to be to cripple the United States, or can it help improve the economy? One crucial factor in the economy is the unemployment rate. The unemployment rate is a common measurement for determining the health of an economy. Unemployment has a negative effect on the economy because it leads to higher payments from state and federal government for unemployment benefits, food assistance, and Medicaid. Not only is the government helping unemployed individuals

55). This is because things like a small flood would effect croplands differently than an urban center. A crop my actually benefit from silt deposits but the New York Stock Exchange would not. However, when disasters increase in scale they almost always have a significant impact on the economy (World Bank & United Nations, 2010, p. 55). Unfortunately, even though these impacts may be short-term there are third order effects on the economy. After Hurricane Katrina many areas were completely abandoned but many more were bought by developers pushing out the lower income populations, completely changing the local economy. This also highlights the different effect that disasters have on different demographics. As an example, the economies of developing countries are effected more by disasters then those of developed nations (World Bank & United Nations, 2010, p. 56). Although this may be because of population density or lack of infrastructure, it shows that demographics as well as the disaster itself have influence over the impact on local economy and

Adams and Kostel, the authors, discuss the causes of the disasters and ways to minimize the effects of these type of disasters. The authors use physical data to help readers visualize the..causes..In...text..it..states,.“Total losses exceeded $150 billion.” The authors use monetary data to show the devastating effects of the hurricane.

Economic and development of any area is always and always will be interrupted by disasters big and small. These disasters can have a big impact on the economy by destroying businesses, homes, and damage property. As disaster pose a challenge to up and coming or existing developments or communities there are ways to possibly help damage and lose such as not building in a flood zone and moving to higher elevation. Disasters can have an effect on families to.

Natural disasters are a huge challenge for the planet because of the adverse effects that are associated with them. One of the major earthquakes to have shaken the earth is the Great Sendai Earthquake or Great Tōhoku Earthquake that occurred in 2011. The event started when a powerful earthquake hit the northeastern Japan on March 11, 2011, and resulted in a widespread damage on land. A series of massive tsunamis later devastated many parts of the coastal regions of the country with the worst affected being the Tohoku region. The tsunami further resulted in a major nuclear accident that damaged distant regions on a power station located along the coast. The economic effects of the tsunami qualify it as one of the major natural disasters because it affected Japan’s economic stability as the country ended up resorting to importing as an alternative to cover the loss.

Natural disaster currently has become a large part of US economy, from tornadoes, fire, floods and hurricanes. These natural disasters have lead to death of people but also a billion dollar damage to several cities or states. According to National center of Environmental Information, in 2015 there were at least ten weather disasters that lead to property damages exceeding one billion dollar across United States. The natural disasters are found in many ways, the one most famous is Hurricane Katrina and another Hurricane Sandy. These two hurricanes are Atlantic hurricanes, Hurricane Katrina hit the Southern States and Hurricane Sandy hit near Atlantic City affecting many eastern States. Although the two hurricanes have occurred in separate years, yet they have caused a lot of damage in large cities leaving thousands of people without home. Furthermore due to these natural disasters has questioned the government how to prepare for natural disaster in near future. The hurricane Katrina and Hurricane Sandy are both consider Natural disaster that has lead to heavy damages but one has more devastating effect than the other.

Hurricane Katrina’s impact on global trade could be summarized using Hurricane Katrina’s impact on New Orleans. The

By looking back at history, it is clear that the economy is an ever changing thing that is unpredictable in many ways. From the stock market crash in the 1920’s to the more recent housing market crash in the 2000’s one thing is for sure; many different factors affect the United States economy every day. In addition to man-made factors there are also other elements that cannot be controlled or even consistently predicted that impact the growth or decline of the economy overall. For example, natural disasters such as tornadoes, hurricanes, and tsunamis not only cause immediate damage wherever they strike, but also have long term economic affects for years to come. One of the natural disasters that left the biggest impact on the economy was Hurricane

An event is only correctly identified as a disaster when the damage is too great for an affected region or city to handle or respond to the event with their own resources. To be more direct, a disaster is an actual event that results in more disruption and losses than a community is capable of handling on their own and they must therefore rely on assistance from other communities, the state or federal government (Smith 2012). A disaster, regardless of the nature of the event, in one region or city, may not qualify as a disaster in another region or city. It is all based on the impacted area’s capability to cope with the event on their own.

A disaster can hurt the economy in two ways. It can reduce supply, that is, it

Transportation has become one of the measurable aspects that can be used to gauge economic progress. Transportation faces many variables of instability and natural disasters are becoming an ever more common factor. Over 40 vessels were booked to arrive or depart at the port of Yokohama the day the 8.9 magnitude earthquake caused the tsunami to hit and cripple Japan. (Leach, 2011) Japan’s shipping industry and services, both imports and exports, came to an absolute halt. (Leach, 2011) The same thing happened in Haiti in 2010 when the country was hit with a 7.0 magnitude earthquake and U.S Armed Forces was sent to assist with the flow of incoming humanitarian aid. Ports were shut down and inland infrastructures were decimated. US Navy engineer’s first objective when they received orders

In order to prevent the current crisis from deepening, immediate actions are required from the major industrial countries and from the international community. There is evidence that the world economy is experiencing a major slowdown, which may deepen if inadequately managed. For example, Japan is in its worst recession since the war, much of East and South-East Asia is in depression, Russia is experiencing a major downturn, growth has stalled in Latin America, and the prices of primary commodities and a number of manufactures are falling in international markets. Authorities in the industrial countries must nonetheless continue to be alert. Several downside risks still remain, and current policies may prove insufficient to prevent the world economy from slipping into recession. Expansionary fiscal policies may be required in other industrial economies, in addition to Japan. It is also crucial that the rules of an open international trading system should operate smoothly, allowing the economies that face adjustment to reduce their deficits or generate trade surpluses with the more vigorous industrial economies.

it will affect the farmers and also the buyers like sheng siong as price will be raised during these disaster time, the global prices will be mark up. Where things will tends to be more expensive as demand is high and supply is

Assessment of the Economic Impact that the Natural Disaster May Have on the Countries of South East Asia