Question

-How did covid19 affect the global shipping structure and the abnormally high demand for some products, causing many products to be out of stock?

Answer 1

Answer:

• COVID 19, definitely led to a huge shift in the demand structure in the types of goods that were demanded in the market. Trade and imports and exports in most countries were at a halt, and only essentials goods were traded however that too at low volume. To reduce any contact between people, trade was extremely limited and most countries started to produce goods domestically.
• Given the pandemic, there was a surge in demand for sanitizers, handwash, and masks. The demand almost increased exponentially, and since trade between nations was stopped and most firms found it difficult to suddenly cater to the excess demand. Some people would buy and stock up on sanitizers, therefore there was an extreme shortage in the market. In the initial uproar of the pandemic, people stocked up on sanitizers and toilet paper and other sanitary products. Suddenly, it was difficult for firms to start massive production especially when sudden large-scale production can be expensive.
• Now ever since then, you will notice more firms are producing sanitizers even if they are not pharmaceutical companies and even clothing stores ae producing masks (a product which was just found in the pharmacy before).