In this podcast, Dr. Matthias Holweg from the University of Cambridge Judge Business School discusses the impact of the devastation left by the March 11th earthquake and tsunami on Japan's economy.
According to Dr. Holweg, supply chains from Japanese electronics, automotive and aerospace manufacturers face short-term disruption. But in the medium- to long-term it will be business as usual for production outside Japan. However, he says that worldwide companies are being forced to reconsider their global supply chains by the 'turmoil' in the oil and energy markets. "We will see a change from global supply to products made locally to local demand."