Archive for the ‘Week 11’ Category

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Blog 11: Japanese imported vegetables in Singapore ‘radioactive’

March 24, 2011

Due Date: March 24, 2011

Article Sourcehttp://www.bbc.co.uk/news/business-12834153

Article Date: March 24, 2011

Article Title: Japanese imported vegetables in Singapore ‘radioactive’

Summary:

Many countries are beginning import bans on food coming out of Japan because of their low levels of radiation. Thankfully because of the low levels an adult would have to eat 3.5 kilograms in order to even reach the levels of radiation caused by an x-ray. Unfortunately, this situation is expected to extend into the long term many farmers will begin taking a hit and it will result in an increasing shortage of food around the world.

Reflection:

These bans are going to have many effects on businesses around the world. First of all, businesses are going to feel the impact of food shortages in the rising food prices and other rising prices. They will have to figure out how to “strategize”  in a way that allows them to survive through these hard times and how to maintain reasonable prices. In addition, to the shortage of  food exports from Japan we will also see an increase of food imports now that they no longer can consume some of their domestic food products. Second, businesses will have to deal with the additional shortage of exports from Japan such as different parts that are key to certain products such as cars or technology. Businesses will have to decide if they are going to try and take opportunity of these shortages or if they are going to try something else that will allow them to get through the shortages. All in all, there is going to be a need for businesses will have to step up and fill the gap in supply chains and in order to fill the many shortages that are going to result. Another aspect of this issue is that businesses will have to be very aware of the many bans on certain Japan exports so that they do not violate any of them or interfere with them in their trade routes.

On a final note, I feel that businesses are going to have to “wake up” and begin to prepare for the effects and begin to understand global dependency. They are going to have to understand that there are going to be increasing prices and decreasing exports. All in all, we are going to see increasing demand for certain products (such as uncontaminated food) and the supply is going to be more and more limited.

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Blog 10: Japan, the economy, and the world

March 22, 2011

As the world’s resources become more and more limited, as global dependency increases, and as trade deficits become larger and larger we see how one event can cause a chain reaction. I believe that this stretched means that has coupled with many events going on in the world will cause businesses to have to make a choice whether to ride it out, grow, or turnaround their company. All of these issues that I have mentioned probably stem from years back but I believe that in reality we can see how the U.S. downturn has started a global downturn which has led to this stretched global economy. For example, we now see more and more political unrest in the Middle East because the economy has been going down and down. This in turn causes food, energy, and other prices to increase because of the strain these events have and our ever increasing global dependency. Japan is another event that will cause the economies of many countries to be impacted because of the downturn in the imports from Japan and also because Japan will now be more dependent on other countries. Once again, businesses will face the choice of what their reaction will be to all of these events. I feel that a lot of companies in the US can definitely increase their production in order to take advantage of all the different companies that have fallen behind. This would hopefully benefit the global economy as a whole.

The main issue that companies will have to look out for in the company years and possibly even months is the increasing prices of energy and the limited amounts of energy whether it be electricity, oil, nuclear, etc. Companies will have to also factor in the chain reaction this spike will have on other goods that they purchase and how consumer spending will continuously be stretched by any price increases and if the company will take the hit or increase their prices to make up for it.

All in all, I think that companies will need to choose one of the three mentioned strategies and stick with it and continuously be “on their toes” in regards to price trends, political trends, and basically any trend that will potentially affect their company or the consumer in general.