Global Warming Affects International Business

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During the 20th century, the earth's average surface temperature increased by 0.6° ± ().2°C (Folland et al. 2001), and there’s strong evidence that human activities are the main cause of this trend (Mitchell et al. 2001). This increase in global surface temperature is thought to have at least some effect on the frequency of extreme weather events due to climate changes (Folland et al. 2001), and there is concern that these changes will have an enormous impact on various industries (Hitz and Smith 2004). Balancing environmental measures with economic development, that is, working toward sustainable development, is the fundamental goal of global environmental policies, including those for global warming (Hijioka, Masui, Takahashi, Matsuoka, and Harasawa 2006). Over the last decade, scientists have extensively studied the greenhouse effect, which holds that the accumulation of carbon dioxide (CO2) is expected to produce global warming and other significant climatic changes over the next century (Mendelsohn, Nordhaus and Shaw, 1994). In this essay, we will be discussing about the impact to an analysis of global warming change effects on agriculture and insurance industries, and some qualitative conclusions on the relative importance of the government decision.

Numerous studies indicate major impacts on agriculture, especially if there is significant mid-continental drying and warming in the country (Mendelsohn et al., 1994). Normally, sky-high food prices reflect scarcity caused by crop failure. Stocks are run down as everyone lives off last year's stores. This year harvests have been poor in some places, notably Australia, where the drought-hit wheat crop failed for the second year running. And world cereals stocks as a proportion of production are the lowest ever recorded. The run-down has been accentuated by the decision of large countries (America and China) to reduce stocks to save money (Peterson, 1979).

With respect to research on global warming, United...
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