Financial Impact Inquiry: COVID-19 and Global Trade (Research Paper Sample)

Financial Impact Inquiry: COVID-19 and Global Trade
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Financial Impact Inquiry: COVID-19 and Global Trade
The COVID-19 pandemic forced many companies to adopt drastic measures to curb the harsh economic circumstances that it had placed them in. Many businesses had to change their business models, and this was because consumer behaviour had changed. To cater for the new trends in product and service supply and demand, many companies adjusted their operational models, even though this was a costly venture for most of them (Aliu, 2021). The impact that COVID-19, therefore, had on global trade is that it changes consumers' behaviour.
There have been two significant changes in consumer behaviour that resulted from the COVID-19 pandemic. The first change pertains to the statistics of customers that preferred to eat or buy foods from restaurants. As Sheth (2020) reveals, most families developed the habit of shopping and cooking from home during the pandemic period. Most governments set up policies that restricted the total number of persons allowed into restaurants or ordered all restaurants to be closed until further notice. Close to half of consumers globally have confirmed that they cook, bake, and consume drinks and food at home more often compared to the pre-COVID period. Additionally, 43% are ordering take-out or delivery more frequently than in the pre-pandemic period (Sheth, 2020). Projections also indicate that close to a quarter of global consumers think that this habit will continue following the pandemic period.
The other change related to the shopping behaviour with most consumers resorting to online shopping instead of physical shopping. According to Aliu (2021), approximately 87% of global consumers placed their orders online for delivery between March and December 2020, and 51% placed orders online for curbside or in-store pickup. Online services during the pandemic period attracted first-time shoppers, with some also resuming online shopping after close to six months (Aliu, 2021). Despite the current progress on vaccine distribution, according to most surveys, consumers have still recorded high levels of fear regarding the pandemic, which implies that COVID-19 is still going to proceed