|Problem solution essays
|Economics Macroeconomics Covid 19
The coronavirus, popularly known as COVID-19, can best be qualified as a global humanitarian crisis. It has had a huge impact on the global economy. Further, it has resulted in the back-tracking of both production and consumption. Most countries have had to shut down their borders in a desperate attempt to contain the disease. As a result, the exportation and importation of goods have been hindered to a great extent.
Besides, most people lost have lost their jobs during this pandemic. This has resulted in a sharp decline in the workforce or labor that helped in the manufacturing of products that were key to trade (OECD. 2020). Low labor, as well as a short supply of funds to sustain the trade process, has resulted in the crippling of a number of economies.
With other countries, particularly those that are recognized as developing countries, tagged as being heat-zones for the pandemic, other nations have been adamant towards engaging in trade with them. Products that initially were a major source of revenue due to their exportations are now forced to retail locally at lower prices, thus registering major losses to the country’s revenue.
Countries that rely on imports for them to produce locally have also suffered majorly. Most countries have fallen short of crucial products such as medication, healthcare equipment, etc. This shortage has ruined global relations as other countries have sought to profit from the struggles of their counterpart nations (OECD, 2020). Countries are largely interdependent. The trade comes in handy since one country may be able to distribute a product that is unavailable or insufficient in the other country. However, the fact that other countries have sought to profit from vulnerable nations has spark hostility between various nations, thus causing a dent on global trade.
Steps that can be Taken to Ensure Global Economic Stability
It is prudent to maintain global supply chains and prioritize the supply of essentials. Essentials could include medical supplies, food, etc. Acknowledging the difficulty in maintaining a constant supply of such essential, owing to the various constraints imposed by the pandemic, governments ought to work together in order to arrive at an amicable solution. Further, nations need to operate in good faith and uphold morality (McKibbin, Warwick and Fernando, 2020) Attempting to profit from the vulnerability of other nations would be self-defeating. Any restrictions imposed on essentials should be reconsidered and uplifted.
The majority of people have been forced to stay at home, sent on unpaid leave, or have lost their jobs. It is, therefore, crucial that they have cushioned appropriately through measures that seek to reduce the burden of remaining connected o their jobs or with their friends and families. Telecommunication tariffs should be reduced; cross-country e-commerce should be improved to get rid of any delays (McKibbin, Warwick and Fernando, 2020). Promotion of non-physical interactions such as e-payments and e-signatures can be used to help maintain the flow of global trade.
Owing to the strict lockdown restrictions imposed by different countries, it has been not easy to process various imports coming in through the border. As a result, essential products have suffered. It would be best to come up with measures that fast-track the processing of good, particularly essentials, at the border point, so that they are able to reach the citizens who are in need, in good time. These processes could equally be digitized to help expedite the formalities required.
McKibbin, Warwick, and Roshen Fernando. 2020. “The Global Macroeconomic Impacts of COVID-19.” Brookings Institute, no. March: 1–43. https://www.brookings.edu/wp-content/uploads/2020/03/20200302_COVID19.pdf.
OECD. 2020. “Coronavirus: The World Economy at Risk.” OECD Interim Economic Assessment, 1–18. http://www.oecd.org/berlin/publikationen/Interim-Economic-Assessment-2-March-2020.pdf.
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Paper Sample: Impact of Covid-19 on Global Trade. (2023, Oct 06). Retrieved from https://speedypaper.com/essays/paper-sample-impact-of-covid-19-on-global-trade
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