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Economic Consequences of a Pandemic

July 23, 2008

Analysis of:Economic Consequences of a Pandemic | www.logicalmanagement.com

At the time of this writing H5N1, known as Avian Flu or popularly as Bird Flu, has spread to approximately 61 countries. It has one of the highest mortality rates of any flu virus of the previous century. Business Impacts = Reductions in: workforce output capacity consumption revenue less profit, less taxes paid less consumption less disposable income redistribution of family asset spending – necessities only business bankruptcies limited cash reserves loss of consumers and suppliers commodity markets erratic reduced trading operations limited due to physical concerns electronic trading erratic power supply systems Internet consistent commodity delivery erratic reduced capacity to process investment activity – 30% of staff sick One key issue that businesses face with a pandemic that is different from other disasters is that multiple locations could be affected simultaneously.

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