This paper examines how physical climate exposure affects firm performance and global supply chains. We document that heat at supplier locations reduces the operating income of suppliers and their customers. Further, customers respond to perceived changes in suppliers’ exposure: when...

In early 2020, COVID-19 infected people throughout the world and brought world commerce to a standstill. Many believe that governments and global businesses were not as prepared as they should have been. While academics have occasionally predicted the economic problems that could result from...