Question

A natural disaster decreases the land available in a small country. In it, according to the Heckscher-Ohlin mode, two goods, golf camps and balsamic vinegar, are produced with land and labour. Golf camps are land intensive and vinegare labour intensive. What is the impact on quantitities produced and the remunerations of workers and landowners of natural disasters?

Answer 1

solution -

Infrastructure destruction is by far the most obvious type of damage that a natural disaster can cause.Hurricanes are among the natural disasters with the greatest financial impact . But regardless of the disaster type, businesses frequently face the following problems after an incident:

• Structural damage
• Lack of employee access to their place of work
• Interruptions in supply chains
• Losses of perishable goods
• Temporary business closures\

Destruction of critical agricultural assets and infrastructure and the losses in the production of crops, livestock and fisheries are not just one of few things that disasters can cause in rural areas.They can change agricultural trade flows, and cause losses in agricultural-dependent manufacturing subsectors such as the textile and food processing industries.

For climate-related disasters such as floods, droughts and tropical storms, 25 percent of all damage and losses is on the agriculture sector. Agriculture is the single most affected sector by droughts, absorbing on average about 84 percent of all the economic impact . Natural disasters like Earthquakes destroy lands owned by farmers , landowners etc. which result in huge losses for them because it takes a long of time to recover those lands ,as its loses its fertility for growing crops and they are even unable to sell this lands to others as no one is willing to buy it.

Farmers working for big landowners also lose their jobs because of the destruction of farm lands.They either remain jobless or migrate place to place to earn a livelihood.

EXAMPLES-

In Kenya, agriculture accounts for 30 percent of national GDP, it provides 60 percent of total employment and accounts for 65 percent of the country’s total exports. Droughts in Kenya have a considerable impact on livelihoods, agriculture and the national economy.

The 2008–2011 drought in the country caused a total of USD 10.7 billion in damages and losses, of which nearly USD 9 billion was on the livestock subsector alone, USD 91 million on the food processing industry, USD 1.5 billion on crops, USD 53 million on fisheries, and USD 85 million on nutrition.

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