Most commodities are traded on global markets, and supply chains have become increasingly globalised. For instance, specialised industrial commodities such as semiconductors are geographically concentrated in a few countries . When climatic events like flooding or heat affect the location of these extraction and production activities, economies are not only disrupted locally but also across borders and in distant countries , as exemplified by the Thailand flood 2011 that led to a shortage of key inputs to the automotive and electronics industry not only in Thailand but also in Japan, Europe and the USA . For many industrialised countries like the UK, Japan, the USA and the European Union, there is increasing evidence that the trade impacts of climate change are significant and can have substantial domestic impacts  . Enhanced trade can transmit risks across borders and thereby amplify damages , but it can also increase resilience .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report