Question

Is humankind dangerously harming the environment?

Many key industries are dominated by a handful of large firms. This tendency has been increasingly evident in recent years, as many separate firms have merged into larger ones. How might this trend affect technological innovation? Could it pose a threat to the overall development of the economy?

Answer 1

1. Humans are known to be adaptive. It is true that many corporate mergers have increased capacilty for firms and there are also companies which are not showing commitment to conserve nature while making profits.

Social costs are more than social benefits and economically these projects are dangerous for the society. Example: IPCC (Intergovernmental Panel on Climate Change) reports over the years have proved how humans are damaging the environment and it is leading to climate change and natural catastrophe can destroy biosphere. There are efforts taken at global level in terms of earth summits but common consensus has not been reached.

2. Many firms merging means reduced competition and hence firms may become a bit relaxed in terms of technological innovation.However, it is not the case fortunately. The demands from customers are changing and as global markets are opening to all the firms, there are larger incentives for firms in investing in research and development. Eg. Amazon- To reduce costs and increase profits it invested not only in logistics and supply chain but also in knowing customer needs through artificial intelligence.

Hence in my opinion updation is required for every company and this will only benefit the economies.