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Thai flooding halts car production by all 9 Japanese automakers

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wanderlust

One of the perils of outsourcing your products to a developing country. With the potentially higher profit due to lower costs, there is also potentially higher risk due to infrastructure weaknesses, earthquakes and tsunami not withstanding...

What exactly has natural disasters got to do with developed or developing countries. You seem to be pointing the finger saying this would not happen in Japan then you go on to say excluding the earthquake and tsunami. Last l check they where natural disasters. Whether in Japan or Thailand natural disasters happen its a fact of life so regardless of whether a business is in Japan or Thailand it is at risk all the same. In fact l would dare to say there is more risk in Japan due to the constant earthquakes..

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I'm Thai and live in Bangkok. We are leaving from Bangkok to another province. We are being in a serious. Actutally , the goverment have time for preparing the flood but they didn't do. They were going to have a football match with Cambodia. When flood occur , the government ,lead by stupid prime minister Yinkluck , she is a stupid , she doesn't know anything...She only say ,"We can handle it , we can handle it" The government never told us the fact .

And now , Industrial estate was destroyed 100% . Half of million people lost their job.

Anyway ,the government don't care.

This is stupid government I have seen in my life.

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That's good since demand is low these factories can save operational costs.

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One of the perils of outsourcing your products to a developing country. With the potentially higher profit due to lower costs, there is also potentially higher risk due to infrastructure weaknesses, earthquakes and tsunami not withstanding...

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some14some - somehow I don't think any of these factories are going to make an overall gain from these floods.

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They may be saving in labor costs, but equipment in water can't be a good thing. I am pretty sure they would rather adjust production than to be forced to stop due to the plant being in or under water.

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@ Spidapig

It is not about where you are, it is about being prepared. Underdeveloped countries have more problems with their infrastructure than developed ones. Japan has constant earthquakes, but they are also prepared against them.

I do not believe natural disasters were high up in companies' forecasts when they were relocating their production, though that might change soon.

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