Final answer:
Businesses today must consider the global marketplace while recognizing the balance between economic output and environmental protection. International cooperation and market-oriented solutions are essential for addressing these concerns, with the production possibility frontier serving as a tool for evaluating tradeoff's.
Step-by-step explanation:
The question posed is centered around what business must consider in today's economy. The main answer is that contemporary businesses need to think in terms of the global marketplace. Issues like global warming and biodiversity are international in scope and transcend national borders, requiring a decentralized and market-oriented approach rather than a world government imposing environmental regulations. The tradeoff between economic output and environmental protection is a significant concern, especially when considering the production possibility frontier which helps to evaluate the compromise between economic activity and environmental health.Concerns have arisen regarding multinational firms potentially evading's strict environmental regulations by relocating to countries with lax standards, which has implications for the environment as well as national security. Furthermore, at international forums like the World Economic Forum, trade ministers have highlighted the link between climate, trade, and sustainable development, emphasizing the importance of ease of access for businesses across borders to support global economic recovery.