WRTI, “Japan’s earthquake and tsunami: the economic impact on the United States”

April 4, 2011 //

April 4, 2011

The March 11 earthquake and tsunami that devastated Japan has also increased concerns about supply-chain disruptions for products such as car parts and electronic equipment. But restarting manufacturing or switching production to other plants will be difficult. “Obviously, the folks in Japan, in all aspects of their society, they have to prioritize what’s important,” said marketing and supply chain management instructor¬†Robert Bugge. “And to make some unique car parts may not rank very high on their list as part of their recovery.” Increasing shipping times and fuel costs are also a concern.¬†Masaaki “Mike” Kotabe, the Washburn Professor of International Business and Marketing, said U.S. maritime law needs to be revamped to defray the cost of fuel and help balance trade. “There are many inefficient, antiquated regulations in the U.S., one of which is the so-called U.S. maritime regulation, regulating domestic and international shipping.”

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