Question

What steps can companies that import from China or export to China do to protect themselves from the fallout out associated with disruptions in trade occurring as a result of the recent coronavirus outbreak? Is this a warning sign that companies need to diversify their markets, production, and supply chains?

Answer 1

Business around the world involve themselves in diversifying their business by expanding the markets and reaching out to the different countries. But the economy of every nation have been badly hit down with the recent corona virus outbreak. The pandemic have hit hard the various economies and businesses.

The companies who were involved in importing goods from China or even exporting goods to China have also faced drastic downfall in their business. In such a case, the companies can take following steps to protect themselves from the fallout, such as:

• Taking steps to carry out their operations with the available raw materials/products only and not wasting the raw materials.
• Framing plans so as to develop and set up in house production plants after the outbreak is controlled, so that the countries and companies can become self sufficient.
• Such companies should try to look out for other countries to import from or to export their products for generation of revenue.

According to me, it is not a warning but a chance where the companies can think of expanding their business base can contact with more countries for supplying their products or importing their raw materials. Moreover it is a chance to look into their strengths and expand their production and manufacturing departments. This will make the companies more self reliant and self sufficient.