Question

how military crisis effects business?

Answer 1

ANSWER:After WW2, world leaders adopted the concept of Interdependence of countries on each other for avoiding any other distruction in the world as they believed on a famous saying that 'Countries those have chains of McDonald's running won't go on war because people prefer to stand in lines there instead going on War'.

World today have been integrated in such a way that military crisis in any will have its effects in almost every part of world and in almost every sphere of Human life. Hence it'll definitely effect businesses as well.

1.Countries directly going on military conflict:

Businesses will affect as Uncertainly increases in market that will negatively impact FDI flows in country, International investment will further get down.

It can also generate crunch in specific type of crucial resources like as we can see present prices which though not have fully converted into military crisis between US IRAN has enhanced oil prices.

Business in various sectors like Tourism etc will surely face negative consequences.

Thought it is being said that during such crises investment in military equipment related businesses will flourish but is it the sustainable way?No because it won't be profitable fo4 normal citizens.

Financial markets will also shut down impacting investment environment negatively.

2.Impact on whole world:

Business in sectors like Oil,Gas etc impacts every country when any disturbance starts is specific area like west asia apart from this uncertainty regarding goods and services regarding export import of items will hamper the global supply chains.