Learning Outcomes Students should apply learning in economics,…

Question Answered step-by-step Learning Outcomes Students should apply learning in economics,… Learning Outcomes Students should apply learning in economics, supply chains, and strategy to discuss the global economic impact of the novel coronavirus, reflect on its impact on their local economies, and brainstorm how businesses might be able to recover. Source: Photo by Marco Di Lauro/Getty Images The Issue A newly discovered coronavirus, named COVID-19, was first reported in Wuhan, China on December 31, 2019, and quickly spread to well over 400,000 confirmed cases across the world and more than 18,600 deaths in a matter of months (a live map of global cases can be found here, courtesy of Johns Hopkins). As of late March, the new coronavirus has prompted the lockdown of vast areas of China, several European countries, and major cities around the globe.China, the epicenter of the outbreak, has the second-largest economy in the world and is an indispensable part of business in today’s global economy, namely in manufacturing, trade, and supply chains. Businesses such as Nike, Starbucks and Apple have temporarily closed stores across mainland China; many of those companies are warning of decreased revenue because of closed stores and disrupted supply chains caused by COVID-19, but few economists have been able to even speculate the magnitude of such economic consequences.Why Is It News? Early estimates project that COVID-19 could cost the global economy USD 2.7 trillion, with ramifications ranging from gross domestic product to local employment. Globalization has led to companies building supply chains across borders, intertwining national economies, meaning the economic losses will be felt far outside of China—experts, in fact, are already predicting a global recession. Carmakers in China had to slash production by roughly 15% in the first quarter of 2020 due to COVID-19. International exporters shipping copper, nickel, zinc, natural gas, and other raw materials to China’s manufacturing plants are slowing down supply immensely, with their freighters being put under quarantine each time they visit China. The country’s position as a manufacturing powerhouse and the largest consumer of raw materials on earth, means any slowdown in manufacturing or supply chain will have ripple effects around the world, causing a severe drop in the commodities market.The outbreak occurred just ahead of Lunar New Year, normally China’s busiest travel season. The lucrative tourism industry in China all but halted, leaving hotels and tour groups empty, while Disney reported the profits from its Shanghai park could drop by USD 280 million. As the virus spreads, the tourism, hospitality, and entertainment industries (and, by proxy, the airline industry) worldwide has suffered similar sudden losses, compounded by the cancellation of conferences, festivals, theatre/concert performances, sporting events, and other large gatherings.Several industries in the United States are reporting huge losses, and are appealing to the federal government for a bailout. As city- or country-wide shutdowns are enforced and expanded, a number of public spaces are being forced to close their doors, including bars, gyms, restaurants, theatres, and school campuses. Many businesses with remote work capabilities are asking staff to work from home, with mixed early returns, since some businesses aren’t necessarily equipped for remote work. A slowdown in business creates a slowdown in labor, and local governments are quickly having to adapt to support workers who might experience a loss of work or income.In response to the outbreak, the World Health Organization (WHO) sent masks, gloves, testing kits, and other equipment to countries across the globe, but warns that the world is quickly running out of personal protective equipment. Consumers have started hoarding face masks, along with other products such as hand sanitizers and toilet paper, leading to further strain on the system, with bottlenecks slowing distribution, and leaving even less equipment for health care workers on the ground who actually need them.The largest factor driving these economic losses is not the virus itself, but how businesses, consumers, and governments are responding to the outbreak. How severe and lasting the ramifications will be remains unseen.Discussion Questions 1.With experts predicting large-scale recessions, how else do you think the economic impact of coronavirus will manifest? 2.How has the pandemic affected your local economy? Do you think your city or state was prepared? 3.Do you think the economy—both globally and locally—can recover from the COVID-19 outbreak? What conditions do you think need to be in place to pave the way for recovery?    Business Management Business Law INBS 6010 Share QuestionEmailCopy link Comments (0)