Question

What economic impact have pandemics such as COVID-19, had on global trade?

Answer 1

Solution:

COVID-19 has greatly impacted global trade in a negative way. For once, it has greatly affected the volume of global trade through major disruptions of value chains resulting in a sudden stop in economic activity. It has led to a supply shock consisting of a massive drop in employment, an increase in the cost of global trade imports, a reduction in exports, a major decrease in global tourism and travel-related services. It has hindered production in the manufacturing sector leading to massive shortages of goods and services globally, including the increase in demand and prices of major products.