As we are all aware, a major tragedy struck Japan over a week ago. The loss of life, damage to property, and risk of radiation from nuclear power plants have been all over the news. There are scarcities of water, food, and fuel in the impacted area for residents and rescue workers. Additionally, Japanese stocks have fallen as industries have lost production. Japan is a major exporter in the region and that means less goods for other nations.
Read and answer questions on any one of the links and stories below. After answering them, include this question at the end: what could the U.S. could learn from this experience?
The cost of rebuilding will put burden on Japanese debt which is already one of the highest in the world.
Who will pay for the rebuilding in Japan?
How will Japan finance this debt?
Why do they already have such a big problem?
Production of energy is vital to operate a nation's industry. With the loss of nuclear plants, Japan must rely more on natural gas and foreign petroleum. This impact on foreign oil may affect prices throughout the world.
What affect could this have on the U.S. Economy? Why?
Why would other nations look to buy Japanese yen in this situation?
How would we benefit from this?
The World Bank is an nongovernmental international organization whose purpose is to assist nations with loans. They forecast a temporary slowdown of the Japanese economy, followed by a recovery. Read the article on the link.
Based on the reading, explain in your own words how an economy's GDP could benefit from this situation?
Be specific to what is happening to Japan and how that relates to a nation's GDP.