In: Finance
THE PROFESSOR ASKED TO REFLECT ON ANY MOST CURRENT GLOBAL ISSUE IN THE WORLD AND HOW IT IS AFFECTING INTERNATIONAL BUSINESS.I CHOSE " RESTRICTIONS ON TRAVEL DUE TO COVID POSES RISKS ON INTERNATIONAL BUSINESS
Covid-19 a pandemic spreaded all over world. It has stopped the all over progress. Every country is struggling with health crisis and economic crisis.
Trade and business is essential to save lives and livelihoods and International co- operation is needed to keep trade flowing.
There are four things which are necessary and we should do it.
- Boost confidence in trade and global markets by improving transparency about trade related policy actions and intentions.
- Keep supply chain flowing esp; for essentials such as health Supplies and food.
- Avoid making things worse, through unnecessary export restrictions and other trade barriers.
- Government support today needs to be delivered in a way that ensures-to serve the public interest.
Covid is impacting the business and investor community across the world. The global and Interconnected nature of today's business environment poses serious risk of disruption of global supply chain that can result in significant loss of revenue and adversely impact global economies.
Many multinational businesses have reduced output of facilities and / or suspended operations in affected regions as travel restrictions and mandatory social distancing and homeworking have been invoked.
Mass quarantines in cities or cruise ships stigmatize those under lockdown and Increase mental health riska as people experience stress, anxiety and a sense of isolation and loss of control over their lives.
Travel bans result in social, economic and political penalties which can discourage individuals and government bodies from sharing information and disclosing future outbreaks.
Travel restrictions and quarantine affecting hundreds of millions of people have left factories short of labour and disrupting just- in- time supply chains and triggering sales warnings across technology, automotive, consumer goods, pharmaceutical and other industries.
Commodity prices have declined in response to a fall in consumption of raw materials and producers are considering cutting output. The mobility and work disruption have ledbto marked declines in consumption squeezing multinational companies in several sectors including aviation, education abroad, infrastructure, tourism, entertainment, hospitality, electronics, consumer and luxury goods.
Pandemic has affected the GDP very badly. Needful action is very much necessary.