The fast-spreading COVID-19 has had a lot of negative impact on business around the world. In an attempt to contain the disease, lockdowns have been put in place. Also, people have been advised to stay at home to minimise contact. For businesses, this means that they can only do their activities online. This article provides some examples of the impact of the global lockdown on businesses:
Limitation of Imports
Lockdown has been accompanied by restrictions, such as limitation of travel. These restrictions have been considerate of some essential services, a reason why goods are still flowing in and out of many countries. Compared to pre-COVID times, the number of imports and exports in countries has greatly reduced. Fewer imports and exports mean fewer goods and thus a decline in business activities.
Restricted Global Movement of Workforce
Human resources are a crucial part of the business community. For some businesses to run successfully, there has to be a skilled workforce. In some cases, skilled personnel have to be sourced from foreign countries. A global lockdown means that they cannot travel and, in turn, little or no business activity has been taking place.
Collapse in the Manufacturing Sector
The global manufacturing sector is essential in business. Businesses need manufactured items for trade. Manufacturing companies rely heavily on imports, especially when raw materials can’t be found in their countries. The global lockdown has resulted in reduced importation of raw materials. This has caused a shortage in the sector, therefore, disrupting their activities. Less production consequently means less business.
Decline in Global Trade
The COVID-19 era has slowed all trading activities. Public places have been seen as hotspots for infections, which means there has been a sharp decline in business. Lockdowns have resulted in a decrease in international trade. People are not allowed to move to other countries to trade. This has led to a global economic slump.