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4/29/2020

Summary

With coronavirus that unexpectedly caught up with people, has resulted in increased losses. The perishability of agricultural products meant access to the market is critical to avoid the damages. With the pandemic requiring people to maintain social distancing and mainly to stay at home has contracted the market for the products. People have lowered the prices to mitigate the level of losses, but it remains high as people do not have the capability to afford the product at the moment. Some entrepreneurs have opted to uphold home deliveries as they try to remain relevant in the market.

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Today, the biggest challenge remains the supply of food in the markets. Perishability is key to agricultural products. Many businessmen and women have to develop new mechanisms to reach the consumer, such as home deliveries and online ordering. Business models have to change or adjust with the current business environment while other businesses to mitigate the losses. Changing trends have an effect on the workers as some companies have retrenched them or on unpaid leave. It is clear that food, income, and job security are the major possible economic issues that are adversely affecting people.  This has led to economic imbalance as big losses are being incurred due to uncertainty caused by the virus in the business fraternity evidenced by a fall in interest rates in financial markets and stock prices.

Industries are experiencing major setbacks in terms of production, making decisions, and maintaining their financial stability. There is a decline in sales and the supply of goods caused by the uncertainty of coronavirus. They are suffering from insufficient liquidity to keep them afloat and to maintain their manpower at the expense of the imbalanced economy. The pandemic has enhanced the inability to create a stable supply, and their operations are affected and limited to their logistics.

With this global pandemic, businesses tend to maintain their relevance in the market or keep in touch with their customers. It has ensured they remain afloat in the market by embracing technology to oversee virtual online businesses. Though with limited access, workers are obliged to provide a planned flow of operations to their clients to keep in touch where necessary. The significance of technology has ensured workers can work from home and enhance the businesses to remain committed towards its goals and vision in the long-run. They have also come up with ways for customers to access the stores and groceries to pick food. Social distancing is a factor that can enable the government to overcome this pandemic, and thus, proper mechanisms remain critical to control spread. Limiting the number of people in a specific place remains key, and most businesses have upheld these strategies given by the government and WHO rather than close their operations.

The economic stability of different countries remains at stake with this global pandemic. It has restricted the governments from continuing with the set projects or operations with revenue collection very low or, at some point, none due to business closure.  The government has to borrow from the IMF and World Bank to finance the Health Department as it focuses on managing the pandemic in the country irrespective of WHO funding. Uncertainties have reduced the level of investment; both local and global FDI have opted to hold their interests until health measures are put at place.

Conclusion

There is a widespread impact of this uncertainty among poor countries, which poses serious problems for the global economy. The pandemic raises confusion on how some countries can survive due to international debt. Forgiveness or rescheduling by developed countries remains an option with repayment remaining at stake currently.

Cited Works

Munshi, Millie, et al. “There’s Plenty of Food in the World, Just Not Where It’s Needed.” Detroit News, Bloomberg, 23 Mar. 2020.

ABC News, ABC News Network, abcnews.go.com/Business/wireStory/coronavirus-claims-unexpected-victim-florida-vegetables-70041972.