The spread of Coronavirus pushes back World’s most significant economic powers. The whole world is connected with the chain of import and export. The global business preferred cheaper and standard able goods. The supply process continued from country to country.
Impact of Coronavirus on Global Business
As China is a hub of production and manufacturing behind the U.S.A. China raised its GDP by 4% to 16%, which makes China the 2nd largest economy in the world. T-shirts and mobile phones are basic commodities that China supplies around the world. Its manufacturing factories are the basic drive for its economic growth. China was making 1/3 manufacturing of the world and the largest exporter around the world.
The supply chain related to China is broken down, due to the corona epidemic disease, and the global business which China conducted became a defaulter. Different researchers believe that the impact of Coronavirus would be longer and lasting on China’s economy and it will be less reliable in the future. Countries recognized by textile market, all import and export have gone shutter down due to this epidemic disease.
To maximize the profit and to reduce production, manufacturing costs, and different transactions made by several business owners around the world; these transactions under globalization are facing decline. Entirely investors are focusing on short term business; it will prove an inferior impact on global business dealings. Global business-like
• Tourism
• Raw material supply
• Transportation
• Supply of medicine
• Hosting
• Small business
• Hotels, restaurants
• Garments
and a lot of different occupations are being affected due to Coronavirus. Markets have lockdown and commerce near about to paralyze around the world. DOW JONES industrial average shows a downfall of 4,000 points on Feb. 28, 2020 account of Coronavirus according to Global news channel. Stock head of SHANGHAI COMP shows massive destruction into the supply chain from 3,039.67 to +9.52 (+0.31%) on Feb. 21, 2020, according to the CNBC MARKET ALERT.
Coronavirus battering down $2.5 trillion world trade by Hannah Miller on Feb. 21, 2020, according to CNBC. Schools and colleges have cancelled their classes, professional sports teams have suspended their seasons, and different campaigns have also been cancelled around the world. In early March, the world has suffered $1.1 billion, economic downfall and with passing the time the defaulter rate going enlarge according to CNBC.
HYUNDAI motor suspended its production in South Korea in early February, it receives initial parts from China, As Apple mobile phone company only creates its designs not manufacture its components. Apple is not going to fulfil consumers’ demand and bearing shortfall conditions because of Coronavirus and China is its manufacturer.
Beside it, the U.S and Canadian central banks have slashed down their interest rate. Global growth will be cut down and reach 1.5% in 2020 if the outbreak of the virus will not stop. The uncertainty condition occurring around the world makes global business difficult to run, most investors are not showing their interest in more and long term investment, mostly multinational companies becoming defaulters due to corona and the world’s economy and global business falling down.
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