Global Crisis- Can Trade Make It Through? (Essay Sample)

Global Crisis: Can trade make it through? COVID-19 has brought damages across borders and it continues to devastate the world. With the economic sector being one of the severely damaged areas, as the global economy contracted a 7 percent loss in 2020 in terms of GDP growth, as opposed to that of 2019 (Yeyati and Filippini, 2021). With that, it is possible to have a downward trend continuing until this global crisis is put to an end. Can global trade survive this pandemic? Or will it just worsen as years pass by? Apart from drastically affecting the daily lives and livelihood of the people, the pandemic also negatively affects economic activities throughout the world. As evidence, it was stated that worldwide trade saw a decrease by 7% in their operations. In fact, there are several factors surrounding pandemic that affects international exchange system and these are the following; Direct health impact, Consequence of Governmental Actions and Impact of Pandemic on third world countries (Liu, Ornelas and Shi, 2021). First, Health Impact, if countries continue to export and import products, there might be instances that viruses will be transported from places to places. As evidence, goods that contains traces of coronavirus were found in China, which they claim to be from Ecuador (AP News, 2020). If the government would not be quick to test incoming goods, residents of those countries would be possibly infected once they get in contact with these products. Second, Consequences of Governmental Actions to prevent the spread of virus, as countries halted some major trading, they got to control the virus. However, income would most probably be decreased with limited exchange. Lastly, impact on third world countries, these places are actually the most vulnerable during the pandemic. For the reason that they have limited resources and most of them rely on exporting. As a matter of fact, developing countries account for 30% of world exports (Ali and Stancil, 2009). Global trade is currently experiencing a downtrend as brought by the pandemic. However, there is still a possibility to shift this and it is by ensuring that exporting and importing adheres to global standards. These countries should employ the strictest measures to guarantee that their products are safe from any harmful viruses. Due to that, countries would be now open to doing trade again as they are provided with goods that we...