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THE EFFECT OF GLOBAL WARMING ON THE ECONOMY OF THE WORLD

Global warming needs no foreword. Society is already acquainted with this phenomenon as it is happening now. Every day, our world reconstructs itself little by little due to global warming. Thus, the changing processes give a drastic impact on us. Besides effects on social, our economy also receives the consequences. There are three main effects of global warming on economy and that is lowering the imports and exports of a country, loss of revenue or income and the number of investors and labourers decreases.

Firstly, the global warming would minimize the imports and exports of a country. As the climate change due to global warming, agriculture will also be affected thus reducing the production of food. Moreover, assets that can be imported and exported are destroyed by disasters such as droughts, floods, typhoons and hurricanes. Since the quantity of food is not enough and most of the assets are ruined, import and export activities would come to a halt. For example, drought in Russia reduced the wheat harvest by more than one-third. Russia also would suffer large crop losses due to wildfires cause by the dry spell.

Secondly, a country would experience a great loss on its income or revenue. The victims of disasters due to global warming will not be able to pay taxes considering assets like their houses are demolished. For instance, in Pakistan, the heaviest monsoon rains on record have sent rivers rampaging over huge swaths of countryside which left fourteen million Pakistanis homeless and poor. Plus, sell and buy activities become inactive as people are busy rebuilding their traumatic life. Import and exports that stop too would not generate income to the country. Hence, global warming will prevent income or revenue to a country.

Lastly, the number of investors and labourers decreases. Investors are not inclining to invest their money on a country that is experiencing loss due to global warming. For example, global warming damages properties and real estate assets. Thus, it is not profitable and gives a total loss for the investors. Furthermore, for the labourers, most of them are busy restoring their houses and work place that devastated by the disasters such as wildfires, rising sea levels, and extreme weather events which definitely cost them months to rebuild. Therefore, the economy will depreciate since the needed people are not active and present in the economic related activities.

In conclusion, the economy of the world will definitely crumble if global warming continues to progress. Global warming is a critical issue and it is the responsibilities of every single human to reduce it. Scientists scattered across the globe have produced predictions that we will face a string of terrible catastrophes unless we act to prepare ourselves and deal with the underlying causes of global warming. The effects of global warming are now happening as minutes passed by. We are the ones that cause global warming and we are the ones that should improve it.

SARAH BINTI ZULKEFLI (104313)