More Trouble for Japan

The earthquake and tsunami that struck Japan on March 11 could wreak a long-term transformation of the supply chain of family-owned small and medium-sized businesses that supply the country’s multinationals. Some Japanese industry officials are forecasting that many SMEs are considering following their multinational counterparts overseas, particularly into China and Southeast Asia. Although it is questionable how many companies would actually move, since most are family operations with 50 to 100 employees, the possibility that they would has become a disturbing topic in Japan.

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