Assessing Economic Impacts of the Japan Crises
Contact: John Mahon, (207) 581-1976
University of Maine business professor John Mahon is available to discuss how events in Japan may affect global, US and even local economies and markets, including tourism.
Mahon, the John M. Murphy Chair of International Business Policy and Strategy in the Maine Business School, expects fallout could be far-reaching. Among his observations:
– The cost of borrowing may increase in global markets as the Japanese may be forced to borrow funds in international markets;
– As the Japanese economy slows down as a result, it may have economic repercussions worldwide and the value of the dollar, yen and other world currencies also may change;
– The materials necessary for reconstruction, including concrete, wood and steel, for instance, may lead to a boom for U.S. and other suppliers of such goods;
– Concerns with safety, particularly with regard to nuclear power, may lead travelers to consider other vacation destinations for some time into the future;
– Issues with the nuclear plants will provide new impetus for environmental groups and their concerns over safety of operations. If Japan moves away from nuclear power, and Europe follows, increased pricing pressure on the value of oil will continue to rise;
– The ability of Japan to contribute funds for other areas of the world, Egypt, Libya and Haiti, included, will be constrained;
– The production slowdown in Japan could provide an advantage for American manufacturers, both domestically and abroad, as customers who do not wish to wait for the purchase of Japanese-made cars or appliances could turn to American-made goods.
Professor Mahon is available at (207) 581-1976 to discuss these and related effects of the destruction from last week’s earthquake, tsunami and ongoing nuclear emergencies in Japan.