Question

As governments and central banks around the world step up efforts to combat covid-19, ramping up successions of quantitative easing and fiscal policy, discuss in 300 words, how these measures can affect multinational corporation’s operation in a global context.

Answer 1

Most of the professionals loss their job due to the pandemic and the lockdown. About 63 percent of workforce affected the novel corona virus. There are several companies took active measures to fight against corona, like putting up relevant advisories, installation of sanitizers and cleansers, increasing cleanliness measures in the office etc. The work from home system will help to avoid the spreading of the virus through work place. There is huge currency depreciation in the economy affect the companies. Pricing strategies and customer price sensitivity are the main challenges which the firms faced. MNCs are the biggest value creators of shareholders, even in this situation they remain minnows in terms of revenue, profits and assets.
This lockdown and pandemic leads the digitalisation of the companies all over the world. The stress of employees reduced through lockdown. The investment in several companies withdrawn. This affects the future of the company and also the share holders. These failures of MNCs affect the future of globalisation. Almost 13-32 percent of decline in the merchandise trade, 30-4- percent reduction in FDI, and 44-80 percent fall in international travelling etc. The collapse of tourism and international trade badly affect the MNCs. Thus the trade and investment fall down.