SEMINAR ON CONTEMPORARY MANAGEMENT ISSUES (PRESENTATION)

IMPACT OF JAPANESE EARTHQUAKE ON JAPANESE, INDIAN AND WORLD ECONOMY

INTERNATIONAL SCHOOL OF INFORMATICS AND MANAGEMENT, JAIPUR

Presented by:
Kishore Kumar Chandani M.B.A. 2nd Semester Batch- 2010-2012

Flow Of Presentation:
Introduction: Japanese earthquake and Tsunami. The Immediate Impact. Effects on Japanese Economy. Effects on Indian Economy. Effects on World Economy. How Japan overcomes from this Disaster ? Conclusion. Bibliography.

Objectives of the study:

To know about the one of the big disaster of the world : JAPAN earthquake.
To know how world economy affected from the JAPAN earthquake ? To know about its effect on various sectors.

To know how Japan overcome from this disaster ?

JAPANESE EARTHQUAKE AND TSUNAMI: An Introduction

The March 11, 2011, the 8.8 magnitude earthquake and tsunami that occurred in Japan. In excess of 28,000 persons in Japan are killed or missing, and more than 196,000 homes and other buildings have been totally or partially damaged. Physical damage has been estimated from $195 billion to as much as $305 billion. Port facilities, sensitive electronic equipment, 2,126 roads, and 56 bridges also were harmed.

To be Conti

Ten nuclear reactor units automatically shut down after the earthquake in three separate nuclear power plants. Onagawa, Fukushima Daiichi and Fukushima Daini. An explosion was reported at Daiichi (Reactor No. 1) on 12 March and second explosion was reported at Daiichi (Reactor No. 3) on 1100 hrs 14 Mar. Radioactivity has been detected outside the units in Fukushima Daiichi.

The Immediate Impact:

Output growth will slow down in immediate run. Commodity prices have declined to begin with based on lower demand from Japan which is the third largest economy in the world. While lower Japanese growth will impact global commodity and financial flows, there would be opportunity for China, USA and Europe in particular to provide the lost output in Japan. The nuclear panic for the world where countries will have to reconsider their options.

Impact on JAPANESE Economy

Impact on JAPANESE Economy

Japan's economy heads into freefall after earthquake and tsunami. Toyota and Nissan were halting production at all of their 20 factories. The World Bank says Japan may need five years to rebuild after the disastrous earthquake and tsunami, which caused up to $235 billion in damage.

To be cont..

Nikkei falls 633 points in first full day of trading after tsunami. Japan has declared nuclear emergency and has shut down its nuclear and oil refineries to prevent any further damage.

In Japan are pushing up prices and causing shortages of critical raw materials and parts, especially for electronics, autos and shipbuilding.

Impact on INDIAN Economy

Impact on INDIAN Economy

India's trade with Japan is just 2% of India's total foreign trade. Exports to Japan are half of imports from Japan. The Indian tourism business is expected to face a setback in the coming quarters as Japan is one of the top 10 source markets for inbound tourism in India. Negative effect on Auto and IT industry. Stocks like L&T and BGR Energy are likely to be adversely affected. Exports of finished steel to Japan are also anticipated to rise in the coming months as the country rebuilds its damaged infrastructure.

Impact on World Economy

Impact on World Economy

World Bank has indicated on some private estimates, the cost of Japans disaster in the range of $ 122 billion to $ 235 billion. According to an estimate the insurance companies may be required to shell out between $ 20 billion to $ 50 billion. Impact through trade. Impact through finance. Today there are 441 nuclear reactors in operations, 58 reactors under construction and 479 new reactors planned or proposed, so need to rethink about these projects.

How Japan overcomes from this crisis ?

All countries continue making maximum efforts possible in search, emergency relief, rehabilitation, and reconstruction activities relating to this disaster. Affirm the intention of the APPF members to continue mobilizing their governments and peoples to contribute to emergency relief, rehabilitation and reconstruction activities relating to the disaster. World health organization give support. World bank provide support for reconstruction.

Conclusion
The effect on the world economy will be minimal and will be mainly felt as a disruption to global production and supply chains. The North American economy is unlikely to be materially dampened by the disaster, but some sectors will be impacted. With the help of other countries & WHO, Japanese economy has started to overcome from its disaster.

Bibliography
www.eia.gov (India Exim data, Bloomberg) www.theworldreporter.com www.tweetbeat.com/Japan-earthquake www.crs.gov (Congressional Research Service) The Times of India Outlook Express