The earthquake and tsunami in Japan demonstrate how globally connected we are. In business, this presents risks and opportunities.
Our world is constantly changing and much of that is beyond our control. That became very apparent this March when a large earthquake followed shortly by a massive tsunami hit the coast of Japan. To our friends and colleagues, our hearts go out to you, and we wish only the best.
Besides the physical damage created and the tremendous number of lives lost, there is also an economic ripple that impacts virtually every country. Japan is a major supplier of semiconductors and automobiles. Early predictions are to expect cost increases and production delays at least for the short term. The bigger impacts may be felt in Japan’s economy for years to come.
Recently, China surpassed Japan to be the second largest economy in the world. The current situation presents both challenges for China and possible opportunities. One of the greatest challenges that China will face is importing. Japan is China’s largest import partner with 13% of products coming from there. The short-term impact is already being felt, as needed components are not shipping. The parts shortage will slow down China’s industrial engine that it has built so much of its economic growth on. While this is expected to be only an immediate problem, the long-term affects could strengthen China’s position as an economic superpower. Japan, which already had its own economic woes is not helped by the latest turn of events and while they will recover, one has to ask to what level.
For other countries, they too will experience short-term problems with the interruption to the supply chain. However, this may also be an opportunity for other countries to increase their import power to China. As a developing nation, China still has many needs to fill. With the current situation, China may choose to seek components from elsewhere in the world and some companies may want to take advantage of this.
Our role as a nation is to help Japan get back on its feet as quickly as possible because the biggest challenge globalization presents is the impact of one economy on another. Yet we also need to look at ways we can strengthen our business growth. Emerging companies could reap the greatest benefit from this. It just depends on what you are willing to do.
http://www.invisionbusinessdevelopment.com/
For more information, please visit Dan's TNNWC Bio.
Powered By TNNWC Group™
For complete tactical and strategic business planning, marketing, media, lead-generation, technological and capital resources, scalable solutions and tools to support every entrepreneurial start-up, young enterprise, small- to medium-sized business and emerging high-growth company, talk to The National Networker Companies™/ TNNWC Group, LLC.We are a collaborative entrepreneurial, creative organization offering you hands-on, personalized assistance in every aspect of achieving your monetization, profitability and financial sustainability objectives, domestically and globally.
We don’t just coach you or offer you pre-packaged, push-button solutions – we listen to you, analyze your exact needs, and work within your budget to: 1) create your tool kit and 2) work as your partner to implement your plan by supporting you in the most efficient and productive use of every tool.
Visit our website, which is located at http://www.TNNWC.com .
To receive our newsletters, publications, information bulletins and alerts, simply join us as a Member. Membership is free and the benefits are unequalled anywhere.
Just go to our home page, and click on the “JOIN US” button.
Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Forward/Share This Article With Colleagues And Social Media:
No comments:
Post a Comment