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The impacts of natural disasters on global supply chains

Globalization has transformed business environments worldwide, including in the AsiaPacific region. The fast expansion of global supply chains (typically comprised of firms, suppliers, distribution links and labour), which are cross-border business and production networks, allows firms to allocate scarce resources more efficiently than ever before. The advancement of information and communication technology (ICT), the development of international logistics systems and the reduction of trade barriers have all facilitated the integration of economies through the web of global supply chains. Recent disasters in Japan and Thailand demonstrate, however, that the development of global supply chains have also changed the risk profile of business and could potentially increase economic vulnerability in Asia and the Pacific through higher direct and indirect disaster risks...

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