Impact Of The Japanese Triple Disasters

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MBA – LSM 536 Logistics & Supply Chain Management Case Analysis Clearly examine and discuss the impact of the Japanese triple disasters on Global Supply Chain. Answer There are divergent views about the impact of the Japanese triple tragedy on the global economy. While some say the impact will be limited mainly to bottlenecks in the global manufacturing supply chain, others have said the Japanese disaster will have longer-term effects a wider cross section of global economy (International Business Times, 2011). “It is still too early to tell what the full impact of the March 11 earthquake, tsunami and growing nuclear crisis on Japan’s infrastructure, industrial base and economic growth will be - let alone the broader global impacts,” according to Nariman Behravesh, chief economist at HIS Global Insight (2011). According to Dr. Anna Nagurney (2011), The New York Times has some timely coverage of the immediate and more speculative impact on global supply chain post the earthquake-tsunami-nuclear set of disasters in Japan. Japan, as the world’s third largest economy, is a key supplier of automobile components (as well as automobiles), high tech products, including integrated chips, and even raw materials such as resins that are used in integrated circuit packaging. Factories that are affected by the triple disaster are shut down in Japan creating cascading failures across the globe with GM even closing one of its manufacturing plans in Louisiana. Not only has manufacturing been disrupted but with so many of the roads impassable, not to mention ports being damaged, the transportation of goods has come to a standstill in parts of Japan. Areas where there is radiation danger with radii of 20 miles to as far as 50 miles have taken on a moon landscape of inactivity since those who have not evacuated have been told to stay indoors. Earthquake in Japan
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