Economy of Japan after tsunami Essay

1754 Words Sep 29th, 2013 8 Pages
When an earthquake followed by a tsunami hit Japan, the people were devastated and everyone was scrambling for their safety. The earthquake was one of the strongest on record and this caused an overwhelming tsunami that destroyed most of the nation. These events not only tore down Japan, but this natural disaster is going to greatly affect the rest of the world and the global economy. Before these events, the global economy was stable and now after these events the global economy is going to see a change for the worse. Some nations feel that they can self produce and are not going to be affected, but there are some nations that are dependent on the production of some products from other nations. Japan is a highly civilized country; …show more content…
Honda is a company that is greatly affected by what has happened because they have to completely shut down production and they are losing money every day they are not working, “ Today Honda made a decision to prolong the halt in production activities at the end product facilities at the following plants until March 27, 2011: for cars ”(Anonymous). Sales have been down from 2009 to 2010 and these events are going to bring down sales even more. Honda is a very prestigious company and this one event happening in Japan is completely shutting down the company stopping. Toyota is another well-known company that is going in to a great fall. Toyota and Honda are both major producers in the automobile industry that many nations rely on for the cheap and reliable parts they produce. They have to stop production not only where they were directly affected in Japan, but also factories in the U.S. According to economists studying the effects of the disaster, “Toyota has shut factories not only in the Japan but also in the US” (EIU). This production affects everyone around the world because that means people are not able to purchase these vehicles anymore because the company does not have the sources to produce for anyone in the world. This is proof of a world facing a serious problem and everyone is being affected negatively and this is proof that even the nations that think they can be self productive are affected negatively. Japan is a major producer

Related Documents