Essay On Earthquake In Japan

2060 Words5 Pages

Macroeconomics
How did the Japanese earthquake affect their economy?

Introduction
Imagine you lost everything you had. Your belongings, your house, maybe even your family… hard to imagine, isn’t it? Well, for some people this became reality. When on March 11, 2011 a massive 9.0-magnitude earthquake occurred near the northeastern coast of Japan, and Japan was hit by enormous tsunami waves shortly after, the country was left in destruction. Thousands of people died. Millions more lost their homes and suffered from lack of electricity, water and transportation. They were destined to start all over and you wouldn’t blame them if they had lost their minds on the way. But they didn’t. The Japanese nation kept it together and instead of raging and complaining and crying in despair the reactions we got to see on the news were quite the contrary.It is their disciplined and determined nature that inspired me and that I think we should all learn from.
The Japanese economy clearly suffered from this earthquake which can be seen from numerous factors that have changed, for example Japan’s trade with other countries. That is why the question to be asked is, ”Should the Japanese government review their budget allocated to invest in social capital to put Japan back on the exporting frontier?”
This is what I would like to investigate in my extended essay by using economic tools, such as the Production Possibility Curve, Demand & Supply Diagrams, Aggregate Demand and Supply Diagrams, export and import analysis and exchange rate analysis.
Not only because of Japan’s role in the world’s economy should we take a look at all this. Also because we can learn from Japan.

What was the damage done to Japan’s infrastructure?
Perhaps...

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22: "Japan's 1st Quake Relief Budget to Boost GDP by 0.6 Pct: Govt| Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 27 Apr. 2011. Web. 13 Dec. 2011. .

Conclusion
It is quite obvious that Japan’s government needs to invest in social capital,and thus they need to review their budget allocated for investment; that they need to make it their priority until the country is recovered to get ‘back on track’. With investment in repair of roads and all other transport systems, investment in power supply and renovation of buildings, Japan will be able to compensate for the loss of revenue from exports they have made during the crisis.

Done by;
Dana Hammad;
Mahmoud saadeddin;
Gheed Al-Katib.

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