What effect do global crises have on international business?

Global crises significantly impact the supply and demand of goods, making this the correct choice. During such events, factors like economic instability, political unrest, natural disasters, or health emergencies disrupt production, logistics, and consumer behavior across borders.

For example, a pandemic may hinder manufacturing capabilities in one country, leading to shortages of certain products in other regions that rely on those goods. This imbalance affects overall demand; consumers may seek alternative products or reduce their consumption in response to increased prices or uncertainty about availability.

The aforementioned shifts in supply and demand can create ripples in the global market, influencing everything from pricing strategies to trade flows, thus making the relationship between global crises and the supply-demand dynamics critical for international business operations.