Naoto Kan JAPAN

 An island nation in East Asia

 Located in the Pacific Ocean

 main islands, from north to south, are Hokkaido,

Honshū, Shikoku and Kyūshū

 Land of the Rising Sun

 an archipelago of 6,852 islands

 world's tenth-largest population

 world's third-largest economy, world's fourth

largest exporter and fifth largest importer

 longest life expectancy and third lowest infant

mortality rate
 framework of a parliamentary representative

democratic monarchy, where Prime Minister of Japan

is the head of government
 member of the G8, APEC, and "ASEAN Plus Three",

and is a participant in the East Asia Summit

 third largest national economy in the world

 Buddhists or Shintoists
DISASTER
 the various factors:-
(1) the country's “anticapitalist” economic institutions,

(2) the failure to clean up bad bank loans and

bankrupt companies,
(3) a deflationary liquidity trap,

(4) upward pressures on the value of the yen,

(5) balance-sheet adjustments instigated by the

collapse of the 1980s “bubble economy.”
 Japan faces a crisis of capitalist maturity involving

a worsening trade-off between economic

stagnation and the exploitative, wasteful, and
destructive utilization of productive capacity.
 This dilemma can only be overcome through an

explicit rejection of capitalist priorities and a

movement toward a more worker-community-
centered economy.
 The US Embassy in Tokyo, prompted by the US Nuclear
Regulatory Commission, has urged Americans living
within 50 miles of the damaged nuclear plants in
Fukushima to evacuate or take shelter indoors as a
precaution against possible radiation exposure.
 According to iSuppli, the major impact on Japan’s

semiconductor production is not likely to be direct

damage to production facilities but rather the disruption
to the entire supply chain due to power outages and
logistical problems.
 Many Japanese tech companies have shut down their

plants and these include Toshiba, Canon, Hitachi, Seiko

Epson, Pioneer, Panasonic, Sony, Renesas Electric. Most of
them are not able to quantify the financial impact and are
also not able to say when they can resume production.
 Even Apple whose second generation iPad was sold out

over the weekend and continues to be in high demand

had succumbed to selling pressure falling 4-5% last night
following the previous day’s 2-3% decline.
 If the government issues newer bonds for rebuilding and reconstruction, the
country might face huge debt crisis, since the country has been still in the
process of recovering from its past recession and shrinking economy.
 Could be short term economic effect on other countries as well.

 Japanese refineries due to the disaster can lower demand for oil

consequently lowering the crude oil

 Japan's Nikkei index dropped 1.7% and the Hang Seng index in Hong Kong

declined 1.5% after the tsunami hit.

 The Bank of Japan, the bank pumped 15 trillion yen ($183 billion) into

money markets to assure financial stability.

 Industrial sectors might face a slowdown due to the shortage of electricity

generation capacity
 The trade flows across the globe will not be effected much.

 Fall in the sentiments of firms and household sector as they will be fearful in

their investment decisions.

 Sony stopped its operations at ten factories and two research centers due to

power outages caused by emergencies at nuclear power plants and damage

caused by quake.
 Other companies Ricoh ,Sigma, Fujifilm, Casio, Tamron and Panasonic are

affected but not heavily and are trying to recover from the crisis.
 ECONOMIC DAMAGE
 Bullishand bearish factors behind the oil price 
 Radiation anxiety grows in disaster-struck Japan 

 Japan reconstruction may take 5 years: World

Bank 
 WHO warns of serious food radiation in disaster-

hit Japan 
 World Bank says East Asia must tighten policy,

downplays Japan risk 

 Some progress at Japan reactors; US sees turning

point 
 World Bank sees Japan slowdown as mild,

temporary 
 Japan mulls capital injections for banks in quake

region 
 NUCLEAR
REACTION
 Japan faced the growing possibility of
serious radiation leaks – maybe even a
catastrophic meltdown – after two more
explosions rocked a nuclear power plant and
workers were forced to abandon the most
dangerous reactor, which suffered damage
to its containment structure.
 The government warned Tuesday of an

alarming radiation leak from the stricken

nuclear power plant and told people nearby
to stay indoors to avoid becoming sick in a
rapidly escalating national crisis following
last week's earthquake and tsunami.
 IMPACT ON INDIAN ECONOMY
 In terms of FDI from Japan in India, there is a significant
contribution of Japan in Indian investment. So the present
Japan’s crisis is going to hit India’s FDI a lot. Companies
like Nissan and Toshiba is set to come in Indian market in a
big way but the present crisis will only delay their launches.
 The negative effect on India both on export terms from

India as well as our GDP growth would be minimum, or

rather would not have had any effect on Indian GDP
 Toyota has postponed the opening ceremony of its second

plant in Bangalore but has said the production of the Etios

sedan developed for the Indian market will not be affected
as engines and transmissions are shipped over a medium to
long term basis.
THANKYOU…