Explain The Impact Of The Recent Hurricane/Disaster To

1579 WordsApr 23, 20177 Pages
Explain the impact of the recent hurricane/disaster to the import/export system. On May 12, 2008, in the Sichuan Province in China, an earthquake with a magnitude of 7.9 killed 69,197 people. The earthquake did damage estimated at $85 billion dollars. Three years after the catastrophe, people were still living in tents, with no money or hope to build a new home. Many have donated money to the reconstruction effort, but funds have been misplaced or misspent. The impact of a large disaster on international trade can be transmitted either directly or indirectly. Direct impacts on exports occur due to the human losses and injuries affecting companies ' human resources and the destruction and damage of physical capital and equipment…show more content…
Sichuan is also one of China’s main food baskets producing 11.6 percent of the country’s pork, 7.32 percent of rice, 4.2 percent of wheat and 8 percent of cooking oil. The earthquake caused damage to the irrigation system which in return affected output and food prices. The disaster contributed to rising crude oil prices in New York. Production halted because of the living conditions for the workers was destroyed. This was looking to be a huge problem for the import and export system. The government responded to the earthquake very timely and insured the homes and living conditions of the workers were corrected and improved in a low turn-over rate. This is return caused Sichuan to attract more than $2 billion in foreign direct investment which was a rise by 33 percent from previous years. China responded so fast and great that it made investors appreciate the the investments made with them and it brought more investments. The earthquake was an opportunity of a lifetime for the ailing economy because Beijing would spend billions to rebuild Sichuan. US exports to China will no doubt increase as a result of the earthquake, but China buying American was nothing new. China is our third largest export market behind Canada and Mexico. Congressional districts have seen triple digit export growth to China. You have a manufacturer company and that produces
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