Economic Globalization is irreversible, and it is as a result of the increasing scale of cross border trade of commodities and services. It is also due to the spread of technologies and the flow of international capital. Economic Globalization seems in Global, and regional organizations such as WTO affiliated manufacturers are supplying different products like devices, ranging from cars to smartphones. [ctt_hbox link=\”cgn4Z\” via=\”no\” ]Since the COVID-19 outbreak was first diagnosed, it has spread to over 190 countries. The pandemic is having a noticeable impact on global economic growth.[/ctt_hbox]
There are three classifications of Economic Globalization.
Political Globalization
Social Globalization
Economic Globalization
Economic Globalization has a significant role to play in spreading wealth equally. It also making markets more efficient, increasing competition, and limiting military conflicts. While the World economy suffered severely due to the Covid-19 outbreak. We can say that as the world has become a Global village in 21 century, so an outbreak of any deadly virus like Corona is not very fare.
Impact on Trade Agreements During a COVID-19 Outbreak
Business deals at a worldwide level can be legal and authentic through mutual written agreements. It is essential to have up to date info to make valuable business-related decisions. Companies can take help from WTO notifications to understand better about coming trends. The rapid outbreak of COVID-19 can impose a severe challenge on Global traders as well. WTO will remain vigilant and keep a close watch on international trade. COVID-19 will badly hit the trade agreements because of shutdown situations, shipping issues, security risks, and price fluctuations. On the other hand, coronavirus pandemic will come with the boost of opportunities in particular segments like food, immunity products, and medical-related requirements.
New Opportunities
The COVID-19 outbreak is going to change social and economic order so everyone should be more resilient to future shocks. WTO trade policies would open new opportunities to women as employees and entrepreneurs. Effective trade policies can make a significant contribution to ensure effective exit from the crises. That\’s why Nations should work together and avoid barriers, tensions, and obstacles to join world trade. There is a need for the day to open up of expertise and the fact that knowledge, scientific discoveries, equipment, medicines, and personal must be shared.
Barriers on Cross Border Capital Movement During Lockdown
Health authorities believe that we can further limit and prevent the spread of COVID-19 by restricting entry and exit. The COVID-19 pandemic is bringing the unusual presence of police and Check posts in several parts within the provinces, states, and at the international level. These steps are taking to slow the spread of the deadly Novel Coronavirus. Countries have placed new restrictions to limit movements into their provinces while police are trying to control trade activities as well as the shipment, transportation of Goods. This practice is taking place at the international level as well. Trade-related obstacles are effecting capital movements that will affect economic growth and ordinary people\’s basic needs. There is the deployment of new check posts at provinces\’ entry points.
Federal level management has established check posts aiming to limit nonessential travel. Different measures are being taken in different states, provinces, and districts. Level based on their pandemic and realities situations. While federal Governments, Provinces, and territories are taking a variety of different measures to prevent close contact and trying to ensure social distancing. Under the covid-19 outbreak above said condition is choking the transportation of capital, that\’s why the world economy is moving downward.
The effect on migration pattern
COVID-19 outbreak will put at risk the rights and health of migrants. A positive change was seen for the migrants in 2017 when an estimated 250 million international migrants filled labor shortage and contributed to much-needed skills, goods, and services around the globe. There is a need to strengthen migration governance in the short and long-term response to the COVID-19 crises. Due to the current situation, migrants, their families, and some of the foundations of our global economy are a risk. The immediate effect of the economic downturn will be felt by the developing and underdeveloped countries and trickle-down towards emigrants and their families.
Border closures are exposing how dependant we are on the mobility of labor and goods. Economic downfall due to Corona will hit the migrant\’s families immediately in their countries of origin. Remittances are a significant source of income and foreign exchange in developing economies going downward as a result of the Covid-19 immediate effect. A downfall was observing from 2008 to 2009, but crises were less severe and global than this one.
Effect of Covid-19 outbreak on Manufacturers
The coronavirus pandemic forced lockdown across the world over February and March 2020. That effect is paralyzing economic activities, and factories shut down, bringing manufacturers into the slum. While factories in China and Japan gradually restarted operations after lengthy shutdown and fall in virus-affected cases allowed countries to start relaxing travel restrictions. The majority of the world is facing a tight situation related to manufacturers. Social distancing is crucial so that,s why people gathering in industries is strictly banned. On the other hand, if the baying capacity of the buyers is weak, then there is no need for production too. It can say that COVID-19 is affecting badly the economic graph having a link with any kind of production.
IMF said that the Covid-19 is already driving the global economy downward and calling on countries to respond with very massive spending to avoid bankruptcy.
Import and Export both hit by Covid-19 outbreak
Import and Export both are in slum period because of lockdown in February and March 2020. Over the past month, a series of official and independent surveys gave indications of damage to the economy that effectively forced to put shut down. The decline in foreign trade directly links with the outbreak of Covid-19 worldwide. Many firms are struggling to get back up to speed, even if they have been grant permission to reopen. Factory owners are struggling to obtain the parts they need, although their suppliers have not returned to work. Many countries have imposed a travel ban, including the US and Europe. So, in a nutshell, it is obvious that lockdown is imposing shut to import and export activities and effecting the world economy at an alarming level.
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