The Major Effects of the Recent Japanese Earthquake and Tsunami on the Essay

The Major cause of the Recent lacquerese Earthquake and Tsunami on the Wold Economy - Essay ExampleThis study aims at gaining insights into the impacts of japanese tsunami and earthquake upon the world(a) economy especially the East Asia (Isidore, 2011). The Main Focus It is noned that japan was facing certain kinds of structural pressures before the earthquake and the tsunami took place. The main problem with the country was related to the ageing hands and the n iodinexistence of the immigration of the workers for long-term. It is the workforce branch that potty lead to the economic growth of the country and hence Japan was facing the problem of slow growth potential in the near future. The country as intumesce as is also facing the burden of heavy public debt in the industrial world. The immediate recovery of Japan after much(prenominal) disaster took place has been an issue of concern. However, it can be noted that Japan has been one of the wealthiest countries moreove r, the countrys government along with the households and the businesses have the necessary resources to rebuild and thus recover from such disasters. In the country of Japan, since the nuclear plant was damaged to a great extent, therefore it was expected that the impartation system, as well as the infrastructure, would interrupt the flow of the gasoline, oil, water and other inputs into the process of production. When such ruckus takes place, then it affects the other industries such as manufacturing and services as well. It was further expected that the economy of Japan in the second quarter of 2011 would contract. However, it was further predicted that the countrys situation would show certain improvements in the third and the fourth quarter of the year 2011 because of the restructuring efforts made by the government through its spending (Beckman, 2011). The supra paragraph has been related to the impact of the Japanese earthquake and tsunami on the country of Japan. However, n ow it is quite portentous to understand the impact of such disasters on the overall world economy. 7 percent of the worlds output is contributed by Japan. However, the main point to be noted in this regard is that its contribution towards the growth of the overall economy has been quite less. The reason behind this is that of the trade surpluses in Japan. It has been expected by the analysts that the global economy would surely expand at a rapid pace by more than 3 percent in 2011. When the broad global (Gross Domestic Product) GDP is taken into consideration, then it can be mentioned that the effects of such disasters seem to be minimum. However, some of the countries may face the impact of such earthquakes and tsunamis of Japan in their countries. It has been evident that in Asia most of the countries depend upon Japan so that they can keep their plants operating. This can be explained with the help of an example. South Korea imports around 25 percent of the industrial parts from Japan. Therefore, if there is a long-term delay in the shipment of the goods from Japan, then it might affect the production as well as the economic growth of that particular country. It was further apparent that the developing countries in the continent such as Latin America had indirect effects via wider impacts upon the global economic growth. Latin America does not have much of the trade links with Japan since Chinas presence is increasing in the region. Latin America exports less than three percent of its total export sales to Japan.