Meanwhile, in Portland, Oregon, the offices of Nike’s headquarters are staying on later. Nike has cut it’s business trips to Asia by more than half in the wake of the SARS outbreak. More than 300,000 people in Asia work for Nike producing more than 4/5ths of the company’s products.

The World Health Organization (WHO) believes that this new disease has the potential to reach epidemic severity. This scares not only people who live in high risk areas, but corporations worldwide. Nike is making plans for just such an occasion. If the disease is not brought under control in the next 12 months, Nike plans to move much of it’s manufacturing outside of Asia, probably to Latin America. Nike is not the only company who is considering such options. Many industries r

The most vulnerable sector though, is the technology industry. Eighty-five percent of personal computers and more than half of the silicon chips for the world are assembled in Asia. An IT research firm in Boston suggests that OEMs (original equipment manufacturers) should prepare themselves with backup supplies should SARS continue to spread.

Many companies, both American and foreign, with high interest in the region have restricted travel to and from the affected areas. Honda has evacuated it’s Japanese employees from the ‘at risk’ areas. Motorola (one of the largest foreign investors of China) has reduced travel as well. Some corporations have banned all travel to ‘at risk’ areas. Wal*Mart has banned all staff from visiting China, Hong Kong, Singapore, Vietnam, and Toronto.

Governments are doing their best to offset the effects of the disease. China has spent $241m on various measures, and more could follow; Taiwan has devoted $1.4 billion to its efforts and Hong Kong has broken the bank with a $1.5 billion spending spree, including a “We love HK” campaign to get its citizens out and about again. Singapore, though almost as badly affected, has spent a more modest $129m, thanks to the government’s fear that money spent in such an open economy merely seeps overseas. Even so, economists at the World Bank reckon that the disease may cost Asia $15 billion this year. With the global economy already weak, SARS is an affliction the region could have done without.

Some topics in this essay:
Hong Kong, Airways’ CEO, Estée Lauder, Health Organization, Walt Disney, America Nike, South Korea, Fair Guangzhou, United Airlines, Singapore Airlines, hong kong, outside asia, sales asia, impact china, ‘at risk’, south korea, sars outbreak, trade fair, nike plans, luxury-goods companies,