1. Natural Resource Environmental Effect in Business

2. Example of Environmental issues
Deforestation
Environmental Impacts of Mining
Global Warming
“Tragedy of the commons”—overfishing and other

3. Deforestation

4. Deforestation Process of cutting down, burning or damaging of forests
This has been going on on a large scale basis for centuries
Why
Farmers do this to create land for growth

5. Jungle burned for agriculture in southern Mexico

6. Logging in
Malaysia.

7. Environmental impacts caused by deforestation
Loss of biodiversity
Forests are important parts of hydrologic cycle in nature

8. Mining

9. Chuquicamata, the largest open pit copper mine in the world, Chile

10. Environmental impacts of mining
Land/soil erosion
Loss of biodiversity in the area
Contamination of ground waters by chemicals from the mining process and products.

11. Chemicals used for mining
Sodium cyanide for extraction of gold
Sulphuric acid for extraction of copper from copper oxides
If these chemicals are not handled properly, serious environmental impacts may occur to the neighbouring environment

12. Global Warming

16. Environmental Effects of Global Warming
Melting of polar ice
Rising sea level
Spread of pests and disease
Ecological impacts (e.g. disturbed life cycle of flora-fauna)

18. Air pollution

20. Effects of Pollution
Disrupt or degrade life-supporting systems for humans or other species.
Can damage wildlife, human health or property.
Can by a nuisance such as noise, smell, sights.

21. Energy Non-renewable Renewable Fisheries Fossil fuels Forest Wind
Petroleum
Coal
Gas
7-16
Renewable
Fisheries
Forest
Wind
Waves

22. Energy Sources of Renewable Energy
Improved technology has resulted in new support for wind energy
Wind energy fastest-growing energy technology in the world
7-20

23. Government Control To correct market failures in case of externalities
To provide Public goods

24. Effect Resource in Business
Government regulation
may bar or severely restrict potential new entrants to an industry
Substitute Goods/Services
That can easily replace the firm’s goods/services