How Natural Weather Conditions Influence the Business Environment?
Jute mills are located on either side of the river Hooghly to reap the benefit of river water as well as transportation of jute goods through the river meant for exports. Due to their vicinity of cotton tracts in Gujarat and Maharashtra, cotton mills in large number grew there.
Nature is a gigantic repository of wealth from which we get everything that is required for our living. The energy, fossil fuel all are provided by nature which is so important for production. David Ricardo the legendary classical economist while propounding the theory of comparative cost doctrine as a basis of emergence of trade assumed that natural endowment is one of the key factors providing the benefit to the producers and enjoy comparative advantage.
The mines, flora & fauna, features of land mass, nature of soil, climatic features form the basis of the production function. Labours from a tropical country like India may have less productivity due to climatic situation. Thus Nature plays a decisive role in the business matters and economic functioning.
A sorry state of affair is when we deliberately neglected the Nature by felling of trees, deforestation, and exploitation of natural resources in unplanned manner. The earth has become warmer. The ozone layer is depleting.
Though there is an attempt in all parts of the globe to protect the quality of nature, UNDP and governments have initiated lot of actions in protecting nature. W.T.O. has also taken some restrictive measure to control trade that harms environment.