ALL YOU NEED TO KNOW ABOUT THE EFFECTS OF COVID-19 TO THE GLOBAL AND MARKET ECONOMY
Covid-19 has remained a threat to not only in China- where it started but also worldwide as the virus is rapidly spreading to other nations. It is a pandemic that has affected both the most developed countries such as the USA, India and even Italy and also the thirdworld countries which comprises African countries such as Kenya, and South Africa.
As of now, no vaccine or medication has been found to fight the virus. This makes the virus uncontrollable as it has no solution although preventive measures such as emphasizing high levels of hygiene especially frequent washing of hands using sanitizers, discouraging social gatherings as spread COVID-19 is favored by crowded places, staying indoors to avoid exposure to the virus, the introduction of face masks and gloves among many other precautions have been put in place.
EFFECTS OF COVID-19 TO THE GLOBAL AND MARKET ECONOMY
The coronavirus pandemic has drowned the way of life of many across the globe, affecting it socially, politically and even economically. Let us now look at the stake the pandemic is putting the majority of countries globally. Don't use plagiarised sources.Get your custom essay just from $11/page
ECONOMIC EFFECTS ON THE GLOBAL AND MARKET ECONOMY
Decreased number of customers.
Come to think of it this way, you open a foodstuff shop and no one comes to buy from the shop, what is likely to happen to your shop? Definitely the business will go down. Globally, most states are in such a situation as the pandemic has led to quarantine and lockdown, which are limiting movement to and fro from shops, market places, hotels, and even recreational centers. There is also fear and tension of the pandemic thus the majority of people opt to stay indoors after a pandemonium stocking from the supermarkets, where they are less likely to contract the virus. This results ina lack of customers in the shopping center and malls leading to experiencing little or even no profits.
Supply chain disruption
Most thirdworld countries depend on the most developed countries for products to boost their economy, in such a case, both participants benefit mutually but due to the current state, none of the countries is benefiting from the other as the virus is spreading all over as manufacturers and suppliers are holding up their stocks as others forced to decrease their production day by day.
This disrupts the supply chain as each country is protecting itself and none can import or export all in the fear of the spread of the virus.
Locally, factories and industries are shutting down due to precautionary measures such as avoiding crowded areas thus they shut down their doors to ensure they put no one at risk of contracting the virus.
Unemployment of immigrants
The majority of people travel to other countries to look for better employment opportunities to improve their living standards, but with the new outbreak this has turned to a nightmare as factories and businesses are closing leaving individuals jobless. All these results of fear of the pandemic and also as precaution measures.
The decline of international trade
Globally, nations depend on one another for survival. This is through the help of international trade which involves importing and exporting products. This has been widely affected as national leaders are in the fear of the spread of the virus to their countries. As they say, prevention is better than cure, the leaders have ordered the closure of boundaries and cancellation of flights ensuring no product or individuals access their countries.
This has led to the closure of multinational companies and stores all over across the globe distracting international trade.
Huge debts
With all attempts to fight and prevent the outbreak, many resources are used such as medicine to help calm the pain of the affected individuals, food as people are under lockdown until no one knows when more money used for vaccine research among many others. This drains a country to an extent it has to seek assistance from other countries and in some cases, you will find that already such countries owe much more to their debtors. This leads to debt on top of other debts.
Low work output
The pandemic is affecting both genders, children, young and old. This poses great fear to individuals to an extent they refrain from going to their workplaces and opt to stay at home. Due to this,poor productivity in their respective workplaces isexperienced.
Travel
Businesses are canceling trade shows and conferences and even some states such as America canceling flights. This has also impacted the tourism sector as tourists cancel flights for holidays and trips all in the fear of contracting the virus to isolate themselves in their home
A decline in oil prices
With the outbreak, oil has been in reduced demand but needed in supply. This is kind of a double tragedy in the oil market as due to low demand, they are forced to lower also the prices. In consideration that oil is a good source of revenue when the prices are low, the market deteriorates. With such, the global economy is poorly affected.
Lowering of bond yields
With the global spread, investors and banks are forced to bid up bond prices leading to a lowering of the yields. This impacts financial systems negatively.
Closure of schools and religious places, interruption of the people`s culture, the distraction of the entertainment industries and overreliance on the internet by children are also among the very many effects of COVID-19. The pandemic has not only posed a threat to our lives and health but also our social, political and economic living. in the political dimensions, nations have stated blame games on who invented or caused the virus to createenmity between nations.
Generally, the pandemic is not only creating causing death and fear but mostlyaffecting the economic sector globally as it is going down day by day. This is a result of more resources being used and they are not accounted for as the main aim is to fight the virus in every way possible.
REFERENCE
https://en.wikipedia.org/wiki/Socio-economic_impact_of_the_2019%E2%80%9320_coronavirus_pandemic
https://www.bbc.com/news/business-51706225