Effects of COVID -19
Effects of COVID-19
In the past weeks, COVID-19 has significantly affected financial markets and industries that are venerable such as tourism, manufacturing hospitality and travel. As such, the world economy has been disrupted causing an increased uncertainty that is widely reflected in increased volatility and lower volatility in the financial market. Thus, the coronavirus has negatively affected business in the world and poses a tremendous risk to the economy today (Vladislav, 2020). This paper will outline how the coronavirus has disrupted things in the world.
Both articles have outlined the impact of the virus on the market sector. The market sector has been adversely affected by the pandemic across the world. As a result of the negative effect on the market, most organizations have made losses. To reduce the loss some companies have shut down and millions of people have lost their jobs (Vladislav,2020). The economy of many counties will experience slow growth in the first half of the year 2020.
One of the difference between the articles is in having a possible economic principle policies responses. These principles are about different ways that can be used to combat the fall of the economy. These measures will enable countries to counter the risk caused by the COVID-19 virus in a constructive, quick and effective manner. In coming up with these policies, it will be possible not to disrupt workers, small scale businesses and also reduce efforts to interfere with the epidemic. Another difference is in political impact created by the coronavirus. Coronavirus may affect the leaders from countries like Japan, U.S, South Korea and others who have been criticized for mishandling the COVID-19 virus and allowing the cases to increase. Such leaders may be forced to leave office or reduce chances for re-election.
In preparation for future crisis it is important for companies to plan on how to invest in technology such that it’s possible to work from home and connect with the office. This can be achieved through adequate development in infrastructure. As COVID-19 has continued to spread around the globe, the supply chain of companies have been significantly disrupted (Nuno, 2020). The Apple Company for example have warned about shortage of supply of its products such as iPhones. This is as a result of closing down its Chinese factories due to the effects of coronavirus. Working may have resulted in China but the market to supply its products has reduced.
COVID-19 has directly affected the economy through affecting demand and supply chain, financial market, household consumption, business investment, and international trade. Therefore, COVID-19 to date remains a great threat to the world economy. Many large companies in different parts of the world have been forced to shut down (Nuno, 2020). As a result companies have made losses and people have lost their jobs. To reduce the losses governments of countries affected by coronavirus need to come up with policies that will help to protect the economy. With coronavirus disrupting the economy, individuals are requested to obey government directives to curb and control the spread of the virus. In China, the government has been able to control the spread of the virus and this gives hope that business will be back to normal soon.
COVID-19 has affected, social, political and economic development in the world today. As such, there is a disruption of the world economy. These disruptions have a negative impact on most business. Nations must, therefore, be ready for hard economic time since they are going to lose a lot of money in the long run (Vladislav, 2020). Some companies have been forced to shut down to help the government control the spread and as a result companies have made losses. The impact of coronavirus is being felt worldwide in almost all sectors and thus there could be possible long term effects. The financial market has gone down being one of the sectors experiencing severe impacts. The labor market, on the other hand, has resulted in urban unemployment. In conclusion coronavirus pandemic has been the worst heat for most businesses and immediate actions need to be taken in to control the situation from getting worse.