ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Whether facing a hurricane, tsunami, or blizzard, any kind of natural disaster will inevitably disrupt global supply chains with postponed or paused deliveries, closed ports, canceled cargo flights, and unbalanced supply and demand.

Detailed explanation-2: -Since 1980, tropical cyclones by far have caused the most home damage, coming in at over $1.1 trillion. Hurricanes bring high winds along with potential flooding that can hit homes at the same time.

Detailed explanation-3: -Natural disasters are caused by events (or natural hazards) such as earthquakes, volcanic activity, drought, floods, landslides, tropical cyclones, pest and disease infestations, etc. On the other hand, man-made disasters are caused mainly by wars and financial/economic crises.

Detailed explanation-4: -Natural disasters can create both supply and demand shocks that affect prices and product availability. Supply shocks originate in the destruction of production capacity and the disruption of supply chains.