Question

Find a current event related to global business, and write a two paragraph summary.

Provide a link to the article on here.

Answer 1

Effect of Covid-19 on Global Business

COVID-19 is now quickly spreading across the world. Nearly every country has cases reported but the burden is spread asymmetrically. In the past seven days (April 6–12), 46 percent of new confirmed cases were registered in Europe and 39 percent were registered in the USA. To some extent, that is because the countries are at different points of the pandemic. Some who were successful at initial containment, such as Singapore and Hong Kong, have seen resurgence and are taking more steps to resolve it.

It's possible the months ahead will be very unpredictable and complex. This now seems likely that there will be a local revival in some areas as sanctions are relaxed and markets reopen. At the earliest points, it will affect the nations. For example, Singapore has seen a revival largely from imported cases, which has led to local transmission; this implies that international travel restrictions can continue. As China reopenes slowly, the strategies it has used (including group-based isolation models and setting a precedent for wearing masks in the workplace) and their efficacy will inform solutions around the world.

Individuals exposed to other coronaviruses demonstrated long-lasting immunity several years after exposure. Everyone hopes the same will hold true for the novel coronavirus, but we certainly don't know. Emerging reports of recovered patients testing positive again on RT-PCR acute-infection testing raise concerns about reactivation, as do studies in China that indicate very low rates of antibodies among some infected people. Although the period of immunity is unlikely to be limited, any new information about this problem will entail a substantial change in strategy.

A global recession in this case will have a more pronounced impact on small and mid-sized companies. Less developed economies will face more hardship than advanced economies. Under this case not all industries are similarly affected. Service industries are expected to be hit hardest, including aviation, transport and tourism. Airlines have already experienced a steep fall in traffic on their international high-profit routes (especially in Asia – Pacific). In this case, airlines miss out on the summer peak travel season leading to bankruptcies (and sector-wide restructuring. In some parts of the industry a wave of restructuring was already possible; COVID-19 will act as an catalyst.

Article- Global economy could shrink by almost 1% in 2020- Economic Times