Globalisation and international trading have been the major contributing factors for economic development in countries all over the world. However, the COVID-19 pandemic has cost the trading industry a major setback. As the virus is spreading across nations and more and more people are getting infected, the governments are increasing the containment zones and restricting trade at a global level.
According to OECD Economic Outlook, the global GDP has fallen by almost 13% because of a decline in global trade opportunities. Another reason for this decline in the trade opportunities could be that the governments are now focussing on supplying the essential goods only and that too with restrictions and strict policies. Also, there is a consistent shift in the demand and supply chains as people are not likely to shop for any other items except the essentials.
Effects on the supply and demand capacity
It has been found that apart from health supplies, the demands of other commodities have reduced for instance, in sectors like manufacturing. There have been direct supply disruptions from East Asia. In the areas where the pandemic has not affected much, the traders are finding it hard or more expensive to carry forward International trades.
Steve, an assignment help expert of economics, told us that people’s needs have altered at this time. They are cutting down expenses and focusing on what’s needed, whether it be households or businesses. There are delays recorded in making purchases by