Question

Evaluate four global challenges and their impact towards business sustainability during the present Covid 19 pandemic

Answer 1

During this present global pandemic COVID-19, Business are severely affected worldwide which is now creating a challenge for the sustainability of the businesses over the globe.

Following are some of the global challenges that the businesses are facing during this period:

Liquidity Crunch: Due to global economic lockdown business are facing severe liquidity crunch. Wherein Recoveries from they are not receiving the money from the creditors and the customers, further due to less liquidity they are not able to pay their debts and salaries to their employees on time.

Decrease in the demand: demand of the goods and services are also heavily decreased as the movements of goods other then necessary goods are not permitted during the lockdown and import export of the goods are also restricted. Therefore the demand for the goods has decreased which has heavily impacted the profitability of the business.

Currency rate fluctuations: due to impact of the lockdown and regular business cycle of the business worldwide all the business are very heavily affected and the economies of several countries are also affected due to which there are heavy fluctuations in the currency rate of the countries which has impacted the business due to increase in the prices etc due to exchange rates.

Economical and Political risks: many countries has made many changes in their economic and other policies which has made the sustainability of the business vulnerable in such environment. Therefore changes in the political and economical environment is also a great challenge to the growth or sustainability of the business.