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Research Paper: How Tsunami Disaster effects on Japans Economic - Essay Example

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It is located at the middle of four varying plates, pacific and Philippine plates to the west and North America and Eurasian plate to the west. Severe numbers of tsunamis have been experienced because Philippine…
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Research Paper: How Tsunami Disaster effects on Japans Economic

Download file to see previous pages... Japan’s economy is affected because it is integrated with other nations internationally via trade in goods and services. Tsunamis destruction of properties affects the sources of Japan’s exports and if it cannot export, then less import is realized. Japan’s economy differs from pre-tsunami, during tsunami to post-tsunami. Therefore, it shows that tsunamis had a negative effect on basis of cost of damage, stock market, Gross Domestic Product or output, power, currency and food exports. Although Japan’s economy was still weak before disaster struck, the tsunami occurrence made it worse
Before tsunami occurred, Japan was the third largest country experiencing a favorable economic status. When tsunami occurred, other nations show as if Japan needed no financial help from them when they recalled previous good economic status of Japan. However, when tsunami occurred, when some of Japan’s biggest exporting sectors such as Sony that exports a large number of electronics and Toyota motor which form the largest world automaker exporting many motors worldwide. Destruction of these key sectors contributed greatly on Japan’s economy, Japan economy started to hover (Hurricane 47-50). Because of power shortages resulting from destruction of energy power plants, vital industries were forced to close down facilities since they could not run without power. When factories or industries were closed, the manufacturing process stopped; hence, no products were available for sale purpose overseas and locally. Moreover, tsunamis destroyed infrastructure hindering transportation and communication means. Movement of goods for trade and consumption from one area to another became impossible due to destruction of roads and communication means. There was a stagnated transaction of goods and services hindering export and import process. Manufacturing industries were destroyed hence only a few or none of the products to be exported. On the other Japan was not ready to budget ...Download file to see next pagesRead More
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