Question

How Covid-19 shows the limits of today’s globalization? How will it impact the future of international trade?

Answer 1

Covid-19 has had a major impact on the world economy. Not just a country or city, it has affected the globe as a whole. Because of the fear of the spread of pandemic, the movement of people across nations and within nations has been restricted. This movement could severely impact the trade, tourism , which would further have an everlasting effect on economies which rely heavily on tourism.

Also because of the risks of the spread, several industries have chosen to reduce the production where the labour was high. All these factors have disrupted the supply chain, affected the exports and overall international trade. China is one of the largest producers of goods and services across the world and the pandemic has led to disruption of this supply chain.

The fear, uncertainty of the pandemic has halted the investments, productions of goods and services. Because of this less goods and services are produced which are essential in nature. This has in-turn impacted the imports and exports. When less would be produced, then less would be available for trade.

The world which had opened to the opportunities of movement of goods and services and people which enabled globalisation has started to move back to the time when there were restrictions on the travel and movement.

Hence covid -19 would have everlasting impact on both trade and globalisation around the world because of its uncertainty and fear.

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