Question

The catastrophic earthquake of 2011 in Japan was followed by the Fukushima nudear reactor accident resulting to a severe pollution crisis in the coastal area that the Japanese Fisheries industry had to face. The coastal area of Fukushima is used by the Japanese fishermen as one of their prime fishing areas. For Japan and Japanese consumers fishery products are considered to be major ingredient elements on the daily food. Describe the industry structure for the Japanese Fisheries, and, using appropriate demand and supply diagrams discuss what the economic theory predicts to happen to the Japanese Fisheries after the Fukhusima nuclear accident. In your answer you should provide factual evidence that will be the result of your research on the topic. l

Answer 1

Japan has widest coastal area and fishing is backbone of the GDP of Japan as fish forms staple food.

The industry structure is perfectly competitive because entry and exit barriers are low and no firm dominates the industry .

During the Fukushima reaction the fisheries and economic zones were widely devastated and caused an adverse supply shock to the nation pushing prices higher.

The fall in supply caused higher prices and hence lower consumption which led to fall in GDP.