Answer to Question #206988 in Marketing for Keda

Question

Examine the potential impact of COVID-19 on globalization in terms of mobility and trade.

Answer 1

The pandemic has brought about detrimental effects to the two major components of globalization; mobility and trade. Firstly, the imposition of lockdown has stopped the movement of people from one continent to another thus affecting the mobility of goods and services. Countries have thus locked their borders to contain the spread of the Covid-19. Secondly, there has been a reduction in the workforce; a significant number of resourceful people who contributed to trade to a large extent have succumbed to covid 19 this slowing down trade in the world. Thirdly, large portions of the national income of many countries have been diverted to fight covid 19 and less attention is given to trade. This lowers the level of trade and mobility of goods and services. Finally, covid 19 has led to a reduction of working hours which has led to the underutilization of labor, thus leading to a reduced level of production and consequently affecting trade. Reduced labor time means less productivity hence less export limiting trade. The transfer of technology has also been slowed.