Will the Tremors of Japan Hit the World Economy? by Sundar Sankaran	Check www.econoview.biz for our innovative Management Development Program that helps you understand the linkages between economies and markets
We need to understand the Japanese economic realities, to appreciate the likely impact.  Download pdf Feedback on this Article
Mr. Rajkumar N, VP & Managing Director, Greater China & Japan at Allergan Singapore Pte Ltd Thanks for sharing the article. It is very well written and very insightful and clearly the impact of the recent events in Japan will have profound implications for the Japanese and the world economy going forward, as you have pointed out. I like the way you have explained the Vicious Circle of Japan's economic problems - it is perhaps the simplest and clearest explanation that i have seen so far of a complex problem, because of all the factors affecting it. I also wonder if these events will force organizations to sit up and take stock of their risk mitigation strategies. While it is normal for companies to mitigate the manufacturing risk by identifying back up facilities or spreading the manufacturing across multiple facilities, I am not sure if they go deep - i.e, identifying key raw materials and assess the risk of supply disruptions for these. Also, will this cause organizations to have a re-think about just-in time inventory policies and will they see value in maintaining a higher level of inventories as a hedge against supply disruptions due to natural causes? Finally, there is talk in Japan about the risk of concentrating all the economic activities in Tokyo - the effects would have been even more disastrous if the tsunami had hit Tokyo. Will the government move to spreading the economic activity across the nation - how will they do it? What will be the impact on Tokyo?? All very interesting questions! I admire the resilience of the Japanese in coping with this tragegy. Clearly something that the world can learn from them. Mr. KN, VP Commercial for a leading supplier to global FMCG Companies Excellent Sundar. Nothing could have been more analytical and perceptive.  I have forwarded this to my Senior Management team. We have been getting a spate of mails from our customers wanting us to assure them on the supply chains front by reviewing our dependence if any on supplies of our feedstock from Japan and our feedstock's feedstock from Japan and so on. We have lost count on the number of questionnaires we have answered in the last few weeks. Another issue that is being feared is the presence of radioactive traces in our products since their find their way into the body through skin, hair or oral cavity. We are figuring out as to how to test the presence of radioactive traces in our product and whether at all it is required ( in case our feedstock does not come from Japan).. Mr. Malcolm Trotter, Chief Executive, IAB, United Kingdom Your article is both most informative and the analysis makes eminent sense of the Japanese economic context – with lessons for other economies arising out of it. Mr. Balan Wasudeo, Independent Director and Corporate Finance Adviser Interesting article and quite agree that the impact of tsunami will be along the way you expect.  More so as there was a second quake today measuring 7.1 on Richter scale. I am however rather bearish on the yen in the medium term. Attached is a blog I wrote in August 2010 - without the Tsunami of course. Not a fashionable view but I am sticking to this. Ms. Kiran Nanda, Director, Indian Merchants' Chamber, Economic Research & Training Foundation Well-written and analytical. Mr. Anant Sardeshmukh, Director General, Mahratta Chamber of Commerce, Industry & Agriculture Nice article, can i  print it in our  Magazine " SAMPADA" which reaches our members about 3000. It would be included in the  April issue which would be released on 10th April. Mr. Shekhar Sathe, Director, Kotak Mahindra Trustee Company Limited Excellent presentation. Thanks. It is amazing that the Yen Carry trade can give such strength to a currency over the last few years even when the economy is contracting. The question usually is who blinks first? The Yen borrower or the Dollar seller! Mr. Chandan Bhattacharya, former Managing Director, State Bank of India Thought provoking and interesting. World will watch eagerly how the rebuilding of Japan's northwest is tackled. Mr. Venkateshwaran Ramamurthy, Head-Analyst, Qatar Petroleum, Doha The article makes interesting reading, in particular, the implications of Japan selling US T-Bills.  Thanks for sharing. Mr. Murli K M, Financial Planner Very different perspective on the Japan earthquake/tsunami saga. Looks like God had to intervene and play the lead economist of an otherwise staid economy and literally shake it up into action. Mr. Pradeep Kumar Sharma, VP SBG, SBI Mutual Fund Nice article.  Thanks for sending. Mr. K.R. Sudhakar, Senior President, Aditya Birla Group Nice article.  Good finish. Mr. Jai Ramachandran, UB Group, South Africa Interesting article!! Well researched and written. Ms. Sneha Suri, Assistant Professor, Delhi University Its interesting. Haven't come across any other writing summarizing the economic impact of Tsunami so well. Would share the same with my students at college. Ms. Parvathi, State Bank of India Very intersting subject.Definitely we (our Govt) have to give it a thought.Hope Indian Economy is not greatly affected by this tremor. Mr. Indranil Sarkar, Ex-Fidelity Mutual Fund An excellent read .... does give a lot of insight into the implications.