Case Studies- business

Case studies on the tsunami

business

The damages and deaths which is known as (macro-economic impact) or MEI, the total or partial destruction of the assets, including the buildings, infrastructure, stocks, Natural resources and etc. These damages occur during or immediately after the tsunami’s disaster and are measured in physical terms, and a monetary replacement value is assigned to it.

The higher operational costs and lower revenues in the provision of essential services.as well as unexpected expenditures (humanitarian assistance, demolition and debris removal, relocation of human settlement) were affect by the tsunami’s destruction when the 2004’s Indian Ocean tsunami hit. The losses from the tsunami caused changes in the economic flows, the production wasn’t obtained and corresponded higher production costs within the businesses economy.

The timing of each disaster effects was, 

• ·      Tsunami’s storm
• ·      Damage
• ·      Losses
• ·      Full reconstruction and economic recovery

The total impacts of the tsunami are,

	Damage	Loss	Total
Indonesia	2920	1531	4451
Thailand	508	1690	2198
India	575	649	1224
Sri lanka	1144	310	1454
Maldives	450	153	604
Total	5597	4333	9930

• Indonesia gained the most damage than Thailand which meant Thailand suffered less damage than the india, sri-lanka or Maldives, Thailand gained the 4^th lowest amount of damage than Indonesia from the 2004 indian ocean tsunami tide around the 26^th of December 2004

•  In order of the amount of damage is was,
• 1.    Indonesia with 2920
• 2.    Sri-lanka with 1144
• 3.    India with 575
• 4.    Thailand with 508
• 5.    And Maldives with 450

Thailand’s unique case, of the ratio of its damage: loss is 1:3 mainly due to the amount of losses in tourism and fisheries around 2004 when the tsunami and the number of countless deaths from about Over 230,000 people from all over the world.

The physical impact of Thai of the tsunami took place in many forms ranging from loss of lives for example, parents and children’s and caused mass lack of natural resources and a brief accounting of these physical damages. Resulting from the loss of human and physical capital this reduction of capital would lead to a reduction of social welfare. While some of the impact remain sentimental and cannot be monetised others will have market values and hence will allow for aggregation. Monetising the economic losses of the Thai Tsunami is useful for many reasons. One may use the economic loss to justify for Government relieves fund or compensation. Or this economic value of the damages may also be used to justify for investment in Tsunami warning system.