Question

what is the impact of covid-19 on international business? (essay question)

Answer 1

Covid-19 has a negative impact on international business. The demand for goods has shifted from luxurious items to essential items. For example, masks, groceries, sanitizers, PPE kits, ventilators have shown tremendous growth. On the contrary demand for items like Cars, high-end cosmetics, branded clothes, etc have not much demand. This lead to the cancellation of orders. Severe losses are borne by companies. For example, the manufacturing of these products is generally done in countries like China. Hence, Chinese manufacturing companies and US companies who source their products are under heavy losses.

Furthermore, there is an acute supply chain limitation because of the ban imposed by governments of numerous countries across the globe. This has resulted in limited international business. To overcome this, countries like the US have started local manufacturing of essential goods. Mr. Trump has focussed on domestic production and taking their business out of China.

Countries like Italy who are dependent on international tourism have no business so far because of the international travel ban. Therefore, they are not getting business and incurring losses.

The airline industry, the tourism industry, the travel industry are the most prominent industries among all industries who are under losses. In the nutshell, unless the lockdown is lifted, whole world will be in very bad shape.

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