International Trade in an Interdependent World

Abstract

November 6, 2011: Flood waters are rising in Thailand, the result of heavy rains, deforested hillsides and missteps by dam operators. Families are gathering their most cherished possessions and scrambling to higher ground. The royal palace in Bangkok is suffering water damage. Meanwhile, around the world, manufacturers are wondering if vital parts shipments will be cut off. For instance, a single factory in the flood-threatened region produces one-fourth of the world’s supply of an essential component of computer hard drives, and Toyota had built facilities nearby to produce parts for its global auto production network. A flood in southeast Asia was threatening producers of computers and cars around the world.