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we have to see two different impacts one to direct industry and indirect. Direct industry like sea food fishing and tourism ll get hit badly due to unpleasant atmosphere. indirectly low business activity ll effect local community . Business future agreement and their stock prices can go down.
Most importantly Goodwill ll be hurt.
How do Oceanic oil spills affect Businesses and Financial Markets?In my point of view, oil as one of the commodites will be under demand & supply equation, once there's a shortage, there will be more oil injected balancing market & vice versa, so once there's an oil spills there will be Oil shortage ( huge quantities) in the international markets could/ Or not be balanced, if not this is will raise oil barrel prices according in the international markets, & this is will create inflation all over the world, & of course rasing up certain currencies ( i.e. Euro , Austriallan dollar & Oazi )& metals, such relationship have negative impact on the whole profit margins of all international companies world wide, in addition there will be a negative impacts on the goods prices( Negative inflations), which may lead that the consumers downgrading consuming power all over the world & of course have a negative impact on the ompanies profit. For the impacts of financial markets the traders will try to Hedge their capital through selected share purchasing , which will have positively impacts on financial markets.
Many businesses gets affected either directly or indirectly. The impact of oil spill disaster will show decline in activity in the following industries: commercial fishing, recreational/tourism, oyster and seafood processing, and numerous others.
The financial consequences for the communities affected will be substantial.
Regulatory costs
The potential for similar disasters
Counteractions by regulators to offset increased regulatory costs
Supply and demand
The market shares will drop
Pollutes the environment and directly hits the business coming dirctly or indirectly from the water body. Solid impact is felt on the nature in the effected area of the water body and on fishing industry.
Disturbs and delays the passage of shipment thru the effected water body.
I believe the main damage is related to reputation of brand image of the committer and the rest is derived thereof. Like, the associated costs of reversing such effects (marketing PR, repair, prevention,) + the costs of legal actions pursued by harmed parties, whether affected people, businesses, governmental or non-governmental bodies.
The impact on financial market would be directly attributable to stock exchange fluctuation (mostly drops) as a result of such disasters. This is especially detrimental in the case of oil-spills for the well-known inexplicable relationship between oil prices (production, availability, demand and consumption) and currency valuations (dollar).
Thank you for the invitation but I am not an expert in the subject. Conceptually, oil spills have a negative effect in the form of increasing production costs which leads to ncreasing oil prices which stall markets and slow growth. On the other hand it might be good for the business which handle the problem.
i DO NOT KNOW
