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Idle capacity in recession-hit Japan

Geoff Riley

11th September 2009

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A fascinating short video from the BBC takes us behind the scenes of a Japanese electronic components business that is having to handle demand that is around 60% lower than last year. Japanese business culture is fundamentally different from the UK & USA, and redundancies are almost unheard of…until now. Having invested huge sums in capital equipment the business - like many in an economy that is struggling to emerge from a deep manufacturing slump - has an extraordinary amount of spare capacity… but there appears to be a silver lining!

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.