Monday 14 March 2011

Global Economy affected after the Earthquake & Tsunami in Japan.

Companies in Japan have started standardizing and assessing their losses post the earthquake and tsunami that shook the country.

Soon after the quake, companies in Japan shut their factories and evacuated workers. Good distribution network is what has created an unknown impact.

As quoted from the International Herald Tribune, the impact of the earthquake on Japan’s economy remains unclear. “It will take a long time for transport and distribution system to work normally,” said Masaaki Kanno, JP Morgan Securities analyst based in Tokyo.

Japan’s exports – mostly consisting of cars, machinery, and manufactured goods – rose about 25% in 2010.
Japanese exports are mostly from the major ports in Japan and most of them are located in the South of Tokyo.

Carl Weinberg, chief economist at High Frequency Economics, a research firm based in New York, said the damage to the country’s third largest economy in the world that will have consequences greater than imagined.

“There is no way to accurately assess damage. Shocks on the Japanese economy will have an impact on people and any business, wherever they are – whether in Japan or New York,” Weinberg said.

Japan’s central bank, on its website, claims that they will continue to calculate the possible losses in financial operations. They assert, ready to take action if necessary.

Source: http://bybusiness.net

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