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iHav to Drive
Eastern Imports
What does Japanese Tsunami and earthquake have to do with prices of toyotas, hondas,
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<blockquote data-quote="answerplease" data-source="post: 2531787" data-attributes="member: 243250"><p>Supply side shocks. </p><p></p><p>Nissan, Toyota and Honda receive a majority (>51%) of their auto parts from Japan and then build the final car in the U.S. That's why their considered imports.</p><p></p><p>Due to Japan's crisis their will be demand-supply imbalances moving the supply curve to the left but leaves demand unchanged. This leads to a higher equilibrium prices for the vehicles.</p><p></p><p>In addition these business have to cover the operating expenses with less inventory and turnover.</p></blockquote><p></p>
[QUOTE="answerplease, post: 2531787, member: 243250"] Supply side shocks. Nissan, Toyota and Honda receive a majority (>51%) of their auto parts from Japan and then build the final car in the U.S. That's why their considered imports. Due to Japan's crisis their will be demand-supply imbalances moving the supply curve to the left but leaves demand unchanged. This leads to a higher equilibrium prices for the vehicles. In addition these business have to cover the operating expenses with less inventory and turnover. [/QUOTE]
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