How connected we are…
News today that Toyota’s automotive plants in the USA (and probably elsewhere) have been warned to prepare for shutdown, based on possible shortages of components from Japan as a result of the damage incurred from the tsunami that hit that island a couple of weeks ago.
The connectedness of our world is being shown in full view as oil prices spike due to Middle East wars and unrest and japan’s earthquake effects. Some use these times to promote cocooning approaches to regulations, commerce, etc. They lay claim to the fact that dependency on others causes them harm. While true, the connectedness with others also does them a lot of good. So everything has a price. Closing down borders would prevent exchanges (ideas, currency, people, etc…). Promoting more trade across countries challenges local producers to be more efficient.
Toyota has US plants. Who would have said that was going to happen thirty years ago? So while some may admonish the costs to the American economy of the connectedness to Japan, the fact is that the benefits far outweigh the costs.