It seems impossible for there to be a year without disasters that have a large influence on the economy. Japan is the third largest economy in the world behind the US and China. The disaster has created many problems for car manufacturers since many of the companies have moved production either to china or Japan. Japanese car companies have seen a lot of trouble in terms of imports and exports of cars, car parts, and many others. Also, oil prices are expected to rise in result of the disaster. All of this is going to have a long term effect on the US and economies world wide.
Saturday, March 26, 2011
Another Year of living dangerously
This article is about how the year of 2011 was supposed to be a stress free year in terms of economic disasters. Unfortunately, the disaster in Japan, and the ongoing issues in the middle east leaves us living yet again on the edge. Before the disasters, the stock market was starting to show signs of growth. With the growth, investors began to sell back bonds that they had purchases in case of troubled times.
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4 comments:
with globalization world economies are so integrated that it is hard to imagine a year without any incidents. A disaster in one economy will definitely affect other economies. Plus, the US plays a big role in the world economy which means if anything majors happens in the world it will affect the economy of the United States.
It is one of the consequences having the economies intertwined with each other through the process of globalization. Hopefully there won't be any other costly incidents in major economies because we cannot really afford another incident and that would stall our need for economic growth if it were to occur.
While people are arguing how globalization lead to a bad consequences if one country had a terrifying disaster, they should look at how global economy will help that country to get back on track faster. There are two sides of every story and this article does not do a good job on giving readers a fair view of what's going on. Japan, though it was hit badly by the tsunami, is recovering faster than expected. They have enough materials to rebuild the country. If without global economy, they will not be able to do so.
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