ECON 206 Assignment: Coronavirus Impact on Global Economy and Business

This report examines the significant impact of the COVID-19 pandemic on the global economy and international business. It discusses the spread of the virus, the measures taken by various nations, and the resulting financial effects, including job losses and market volatility. The analysis covers the disruption of industrial manufacturing chains, the decline in consumer spending, and the potential for a global recession. The report also highlights the impact on specific sectors like the airline industry and the increased risk of non-performing loans. It concludes that COVID-19 poses a major threat to the global economy and financial markets, leading to projections of GDP falls and a decline in consumer confidence, referencing several economic studies and data sources to support its findings.

Running head: ESSAY 0
GLOBAL ECONOMY
EFFECT OF CORONA VIRUS ON GLOBAL ECONOMY AND INTERNATIONAL BUSINESS
APRIL 15, 2020
STUDENT DETAILS

ESSAY 1
In the current period, Covid-19 has been spread across China, Europe, Middle East, and
other nations. The international financial markets reacted intensely while corona virus spread
to most of the nations of the world. The worst thing is that this disease in spreading quickly all
over the world. Now Covid-19 is declared as global pandemic. The financial effects of corona
virus can be seen everywhere in the world. The main issue is not only the number of matters of
this disease, but the level of allocation to the economy from controlling measures. The spread
of Covid-19 has left business in the world counting cost. The occurrence of COVID-19 is a
disaster for human beings. It has increasing impact on global economy. In the following parts,
the effect of Corona Virus on international business as well as global economy is discussed and
critically examined.
Corona virus has killed more than thousand people. To stop occurrence of Covid-19,
many nations have started applying toughest measures. Various countries are following strict
lockdown. It stopped industrial manufacturing chains. It can see that COVID-19 pandemic is
distressing almost all the businesses internationally. According to the economic data, the social
distancing is affecting consumer’s spending. It can say that it would have knock down effect on
the business investment. Additionally, it can also see that COVID-19 has broken the large
economies of world in near hibernation. This global pandemic is adversely affecting evolving
markets all over the world. Considering the empty restaurants as well as cafes (if ventured out
and shops were not closed), and it can easily say that the toll on economy from corona virus has
been worst. It is stated by the economists that about four million jobs can have been lost across
the world (Huang, et. al, 2020).

ESSAY 2
In addition, the combination of historical failure into the prices of oil, and volatility in
market put significant pressure on solvency everywhere in the world. The sectors most exposed
to theatrical drop in international demands and much tougher economic conditions have
practised the most downfalls to this point. Although, the marketplace sentiments can be
misrepresentative. It can say that the declining risk is real. The susceptibility of largest
economies, such as economy of USA, have risen as development has slowed. It is also noticed
that the expansions of different nations are now lesser able for absorbing the shocks. In actual,
the exogenous surprise beating the economy of USA at this susceptible period has been the
most credible declining situation period. Further, it is possible that the organisations will
struggle to pay loan amount on increasing rate what is called non-performing loans of 1.1
trillion dollars (Zhang, Deng & Zhang, 2020). It is noticed that airlines of China have been
required to ground the plane. The Chines airlines are also anticipated to lose 12.8 billion dollars
in the revenues. As per the data given by the International Air Transportation Association, the
airline industry will have loss of 29 billion dollars internationally (Wang, et. al, 2020).
As effect of COVID-19 spreads internationally, the financial effects of social distancing
measure to comprise coronavirus, and dropping faith of business and customers, have provided
the sharper blow to close-term forecasts of development and mixed financial marketplaces.
Because of the fast rising human toll of coronavirus, the world is entering into the period of
exceptional declining rates in financial activities as well as prices of financial asset, and similarly
quick along with unmatched strategy reactions to both conflict along with off-set the failures
(Novel, 2020). It is stated by International Monetary Fund that it is estimated that the
international economy would be reduced by 3% this year. Before the occurrence of COVID-19, it

ESSAY 3
was projected that that the global economy will be increased by 3.3%. As per this projection, it
is warned by International Monetary Fund that this year the global economy would have worst
recession in this year (Gourinchas, 2020).
As per the above analysis, it can be concluded that COVID-19 is affecting international
business very badly. It is biggest threat to the global economy along with financial markets.
Based on the public data as well as government sources, it can say that the world will face
global financial crisis. The present course of coronavirus has led to new projection. As per this
projection, GDP would be fall in the first quarter of next year. It can have healthy development
in the earlier period of second quarter. It is concluded that financial marketplace performances
as well as faith of consumer are strongly related to each other. However, the consumer’s
confidence can drop even while market is up.

ESSAY 4
References
Boyadjieva, P. & Ilieva-Trichkova, P., (2020). Inclusion and Fairness in Access to Higher
Education: Theoretical Distinctions, Measurement and Patterns of Interaction.
In Universities as Political Institutions, 237-261
Gourinchas, P.O., (2020). 2 Flattening the pandemic and recession curves. Mitigating the COVID
Economic Crisis: Act Fast and Do Whatever, 31
Huang, C., Wang, Y., Li, X., Ren, L., Zhao, J., Hu, Y., Zhang, L., Fan, G., Xu, J., Gu, X. & Cheng, Z.,
(2020). Clinical features of patients infected with 2019 novel coronavirus in Wuhan,
China. The Lancet, 395(10223), 497-506.
Novel, C.P.E.R.E., (2020). The epidemiological characteristics of an outbreak of 2019 novel
coronavirus diseases (COVID-19) in China. Zhonghua liu xing bing xue za zhi= Zhonghua
liuxingbingxue zazhi, 41(2), 145.
Wang, C., Horby, P.W., Hayden, F.G. & Gao, G.F., (2020). A novel coronavirus outbreak of global
health concern. The Lancet, 395(10223), 470-473.
Zhang, Q., Deng, H. & Zhang, C., (2020). The value of early response by surrounding areas of
epidemic center Hubei during COVID-2019 outbreak in China: A quasi-experiment
analysis. Available at SSRN 3548372