How does extreme weather affect global trade?

How does extreme weather affect global trade?

Extreme weather can disrupt supply chains, damage infrastructure, and affect shipping routes, leading to delays and increased costs.

Can you give me examples of extreme weather events that have impacted trade?

Sure! Hurricanes, floods, and droughts are significant events. For instance, Hurricane Katrina in 2005 disrupted oil and gas supplies.

What industries are most affected by these disruptions?

Industries like agriculture, shipping, and manufacturing are heavily impacted, as they rely on stable weather conditions for operations.

How do companies prepare for extreme weather events?

Companies often develop contingency plans, diversify supply sources, and invest in resilient infrastructure to mitigate risks.

Is there a way to predict the impact of extreme weather on trade?

Yes, predictive analytics and climate modeling can help assess potential impacts, allowing companies to plan accordingly.