Effects of COVID-19 on International Businesses
The onset of the deadly pandemic, coronavirus, has had a significant economic impact on the global economy, particularly on financial markets and non- essential industries and businesses such as travel and hospitality companies, manufacturing industries and the tourism industries. International businesses are experiencing declines in revenues from the sale of manufactured products and services offered. Moreover, there have been increased costs of conducting business in most sectors of the economy, mainly due to the interruption of production networks and alterations in consumption as a result of changes in household preferences during the pandemic. The international film market has equally been affected by an estimated possible loss of $5 billion in sales (CSIS). Additionally, the global supply chain has severely affected the operations of most businesses. China is the leading supplier of most components and finished goods to manufacturers and retailers; thus, it has affected most international businesses dependent on these key inputs. Most factories have ceased production, with some employees being laid off in an aim to cut on costs needed to survive the pandemic. Besides, the export business has been greatly affected with countries involved suffering significant economic and financial losses (Smith-Nonini, Sandy, et al.). While many businesses have had to shut down, essential companies and businesses are thriving. Pharmaceutical companies, enterprises producing sterile gloves, sanitizers, protective masks, medicine, and disinfectants are some of the economic entities that have been spared internationally during these times. What is more, internet marketing has become more popular, with some businesses opting for online retailing and working from home. Technology companies are therefore affected positively by the pandemic, especially with people now using online platforms to work, communicate, and shop (Raye & mike). Clearly, despite the severe economic implications on most businesses, specific industries around the globe are experiencing unprecedented growth.
Work Cited
Smith-Nonini, Sandy, et al. “How COVID-19 Would Affect the Global Economy?” ResearchGate, 27 Apr. 2020, www.researchgate.net/post/How_COVID-19_would_affect_the_global_economy.
“The Global Economic Impacts of COVID-19.” The Global Economic Impacts of COVID-19 | Center for Strategic and International Studies, 22 Apr. 2020, www.csis.org/analysis/global-economic-impacts-covid-19.
Raye, Mike. “3 Stocks That Thrive in a Pandemic.” The Motley Fool, The Motley Fool, 27 Mar. 2020, www.fool.com/investing/2020/03/27/3-stocks-that-thrive-in-a-pandemic.aspx.