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The impact of a supply-side shock on firms total costs?

I've been given the example of the Japan tsunami in 2011 as a supply-side shock. I'm finding it hard to relate it back to firms total costs. Is it something to do with the Japan being a huge exporter of machinery?

Any help would be appreciated
http://www.voxeu.org/article/japans-earthquake-and-tsunami-global-supply-chain-impacts

This should give you an idea but do wider reading beforehand to form your argument or discussion. I am pretty sure we are not allowed to give full in depth answers on here but only help you in finding your own way. I may be wrong.

Good luck and an interesting topic indeed.

:smile:
Reply 2
Original post by Sanctimonious
http://www.voxeu.org/article/japans-earthquake-and-tsunami-global-supply-chain-impacts

This should give you an idea but do wider reading beforehand to form your argument or discussion. I am pretty sure we are not allowed to give full in depth answers on here but only help you in finding your own way. I may be wrong.

Good luck and an interesting topic indeed.

:smile:


Thank you. Yes I just need a point in the right direction. Thanks again!

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