Question

In: Finance

in what way international trade market impacted by the coronavirus in the long time?

in what way international trade market impacted by the coronavirus in the long time?

Solutions

Expert Solution

International trade Market is hampered in a severe manner after Covid 19. There is a serious concern of an impending global recession. There is growing uncertainty as this contagion is continuously growing and there is a high probability of extended lockdown.

Economies are severely hit as well as they are growing sceptical of other countries. Since In this age of globalisation, economies are dependent on trade relations , the impact is going to magnify.

Fears of this contagion has widespread plunged the stocks and bond markets directly pushing into a swift bear markets in a span of one month.

Travel are completely banned and advance bookings are getting cancelled as countries has locked down their respective economies and First major victim will be different Airlines companies and that could well reflect into the stocks prices. They would most probably need a government intervention like bailouts to get out of this mess.

This contagion has also impacted oil related sectors severely.It has also affected those companies who have manufacturing units in China because it is most likely that china is going to face global isolation once this whole mess Settles down.

So there would be widespread trade deficits and slow growth of economies due to this pandemic.


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