Question

There is no doubt the economic ramifications of the COVID pandemic will be dramatic and long lasting. Eighteen months from now, what economic changes will be with us still. In what ways might the shape of the American Business’ sectors have fundamentally changed? In your answer, make sure you use the vocabulary of an economist and some of the concepts we learned over the course of our class.

Answer 1

Covid-19 has already changed the course of economy all around the world.

However, in terms of death, US has suffered the most with Corona related deaths reaching as high as 80,000.

This is also a well known fact that the virus originated in Wuhan, a city in China. Almost all the countries have unequivocally accussed China to some extent, rightly so.

Talking about its impact on American Business sectors, it will definitely bring substantial changes in the country. Most importantly the trade with China in particular and the world in general would be negatively impacted. Companies would look at ways reducing dependence on countries like China to meet their supply chain. Some of production may move to other countries as well.

As far as services sector is concerned, companies may look at ways to have workers stay at home and still be fully reliable and efficient as far as productivity is concerned, thereby leading to gradual spread of awareness amongst educated people about the possibility of work from home as a permanent measure.

Tourism and hospitality sector may be one of the most affected. Tourists may escape the expensive tours to our country which may lead to fall in the hospitality sector.

Hpefully, by then vaccince should be developed which would lead to lower risk among people about the infections.

The government would really find it difficult to bring back the economy on track, unless a vaccince is developed.