Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Case Code: ECON091
Case Length: 18 Pages
Pub Date: 2020
Teaching Note: Available
Organization : -
Countries : Global
Themes: Economics/ politics & business environment
Abstract Case Intro 1 Case Intro 2 Excerpts
Impact on People
The ongoing COVID-19 pandemic had affected the workforce severely, with many losing their jobs. The UNILO predicted that 1.6 billion informal economy workers could suffer massive damage to their livelihoods. Further, UNILO stated that in the second quarter of 2020, the COVID-19 pandemic might cost the equivalent of 305 million full-time jobs. As of April 25, 2020, 3.8 million Americans had made an unemployment claim – giving a six-week total of around 30 million. Payroll processor ADP noted the US private sector had shed more than 20 million jobs in April 2020. ....
Impact on Supply Chain Across The World
Over the past four decades, most of manufacturing production globally had been organized in what had become known as global value chains (GVCs). Raw materials and intermediate goods were shipped around the globe multiple times and then assembled in yet another location. The final output was re-exported to final consumers located in both developed and developing markets. China was at the heart of such GVCs for many goods, for example, as a primary producer of high-value products and components, as a large customer of global commodities and industrial products, and as a major consumer marketplace. ...
Contraction in Demand and Suply
According to Dun & Bradstreet, besides the impact on human lives and the global supply chain, the pandemic dealt a severe demand shock. The demand shock had offset the green shoots of recovery of the Indian economy that were visible toward the end of 2019 and early 2020. “A fall in the optimism levels amid heightened uncertainty has led to a 'double whammy' – closure of businesses leading to global supply chain disruptions and a steep fall in the consumption,” said Arun Singh, chief economist at Dun & Bradstreet. ..
Stimulus Packages by Countries
To combat the COVID-19 pandemic crisis, many countries began approving economic stimulus packages. Many big economies earmarked a significant portion of the gross domestic product (GDP) to stop the ill effects of COVID-19 on their economy and people. The data, compiled by Ceyhun Elgin, economist, showed that Japan had announced a stimulus package which was more than 21% of its GDP. The US (13.3%), Australia (10.8%), and Germany (10.7%) followed. Subsequently, on May 13, 2020, India began unveiling, tranche by tranche, a $266 billion stimulus package to help its coronavirus-hit economy get back on its feet. The first instalment of the Aatmanirbhar Bharat Abhiyan (self-reliant India) package, announced on May 13, 2020, by finance minister Nirmala Sitharaman, included credit lines to small businesses, shadow banks, and beleaguered power distribution companies. ....
Changing Paradigm of International Relations
The global solidarity in tackling the effects of the COVID-19 pandemic and finding a vaccine took a back seat when countries that were affected the most, albeit economically, decided to investigate China for errors of commission and omission in relation to the origin and spread of the virus and the information opacity surrounding it. Finally, Australia took the lead in drafting a stronger resolution to be admitted, discussed, and acted upon by the 194-member strong executive body of the WHO, the World Health Assembly (WHA), which met in early May 2020, amidst accusations of acting at the behest of Beijing...
Exhibit I: Chinese Export and Import for Selected Products
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