Q:Will Japan’s quake rock the world’s economy?
1.The Japanese economy is the world’s third-largest,and
its companies play important roles in everything from
industry to high-tech to finance .there in no doubt that the disaster in Japan will somehow affect the global economy.
However,There is little reason to believe the troubles in Japan’s economy will have a very dramatic impact on the rest of the world.It’s apparent that industrial output and demand in japan will take a hit,and so will the growth.But that won’t translate into big losses for the global economy.
As far as I’m concerned,there are two reasons why.
First,though Japan is a big economy,it exports more than it imports,thus a decrease in demand doesn’t spill
over much into the global economy.
Second,Japan has been in a 20-year economic funk,and consequencely,the importance of the country in the world economy has been on the decline.As we know,Last year ,China surpassed Japan and has become the world’s second-largest economy.Since the economy doesn’t grow much,it doesn’t contribute much to the world
In a word,the consequences of Japan’s crisis on the
rest of the world is inevitable,but not strong enough to rock the global economy.
2.Q:How does Japan’s quake affect the world economy
The main impact of Japan’s crisis will show itself in
supply chains. Japan is tightly integrated into global manufacturing networks and is an important supplier of tons of stuff the world needs,from the steel to semiconductors.So any disruption of supply of components and materials in Japan will ripple through those supply chains,potentially causing shortages or interruptions that would hamper factory operations around the world .The situation is probably most serious in electronics,since Japan produces 40% of the world’s
electronics components.This supply chain problem may be short-term,as companies find new sources of
components,and there is enough space capacity in Japan and elsewhere to replace production lost to quake damage.but based on what’s going on in Japan’s industrial
sector these days,problems seem inevitable.Factories are shut across the country,and with power shortages and
transport a mess,industrial production is unlikely to get
back to normal for weeks.