COVID 19 causes exceptional global health crisis. Not a single thing is untouched. COVID 19 also effected international trade. International Trade is the one of the best means to connect on people from one country to another, but COVID 19 disconnected the world. Current pandemic changes complete meaning of globalization.
The virus sabotages the world economy and if we compare the destruction of economy from the global financial crisis, then the COVID 19 causes steepest fall in the economy. The research reading says that the downfall in world trade is 8.9% in 2020.
The trade is divided into two categories i.e., Service trade and goods trade. The service trade represents the sell of intangible goods. In other word we can say that the services like hospitality, services rendered by the professional like, Lawyers, doctors etc. The goods trade represents the sell and purchase of tangible goods like, clothes, automobiles etc. The 2020 reading says that service trade gets more affected by the COVID 19 i.e., the downfall in the service trade is 20% in comparison to the goods trade. We can see it in the given analysis-
During COVID 19 every country tries to protect their own people because of lack of resources. All of sudden the demand and supply broke the equilibrium point and causes disruption in the economy. The disruption in the world economy increasing the restriction on export.
Governments have enacted new laws which is a barrier for the exports of the goods like masks, gloves, ventilators etc. because their own people are more important than others. In order to do that they are trying to protect their own access scarce supplies.
If anyone wants to export any kind of medical supplies from European Union, the European Union requires special kind of export license for medical supplies. The medical supplies include protective spectacles and visors, face shields, protective garments etc. Not only European Union or USA restricted the export of supplies but China also demanded the special export license.
When all rich country started to think about their own country and their own economy every country started to reformulate or amend the FEMA (Foreign Exchange and Management Act). Whether country is rich or not, depends upon the GDP of the country. We can see that by the given data, which shows the unprecedented output collapse is occurring in the first half of 2020-
Apart from medical supplies, the COVID 19 affected whole cargo, shipping, agricultural market industries which include food, fabric etc. the overall fall in the GDP is 13% approximately.
Now everyone tries to live a normal life. Still the impact of COVID 19 on the people have negative impact. The government is trying to get rid of from the damages caused by the COVID 19, but the GDP has fallen too far. Every coin has a two side so, if we are talking about the COVID 19 Covid 19 has also two sides, one is negative and another, one is positive.
COVID 19 has positive impact because people get closed to their families, environment started to breathe. But the positive impact has no effect on the trade, still country is suffering from unemployment, financial crisis. COVID 19 causes adverse impact on the globe and change the complete definition of the “Globalization”.
