Question

1)Did the pandemic change the trade policy or the need for trade restrictions ? Provide an example.

Please provide resource

Answer 1

Yes, The COVID-19 pandemic has completely changed the worldview in many countries. The demerits of a global supply chain have been exposed. Many firms that rely on foreign imports of raw materials or other necessary operational expertise have suffered major losses due to their inability to do so during the pandemic. Purely domestic firms have a better chance of mitigating the virus with less harm. Thus, there is certainly a need to relook at the trade policy. While free trade has created welfare for everyone involved, it does create vulnerabilities during times of crisis. Excessive foreign reliance can hamper the countries ability to serve its citizens when all the foreign doors are locked. Many countries have imposed trade restrictions recently. For instance, India has openly declared its bid to become self-reliant in key industries and has imposed bans on several Chinese goods. People are being encouraged to but domestically manufactured goods to support the Indian industries and help them grow.