THE EFFECT OF COVID ON INTERNATIONAL BUSINESS

The emergence of the COVID-19 pandemic has resulted in a significant change in global business currently.  Even though business was already on the brink of evolution before the outbreak of the virus,  the current turn of events served as a catalyst to facilitate the speedy metamorphosis of economic and social life to a more digitalized form.

The limitations of conducting global business were brought to the limelight as the pandemic caught most global economic powerhouses off guard.  The question now is how have these entities responded to the outbreak that crept upon the world, nearly crippling it for a moment.

Now it is common knowledge to everyone that the social structures which we thought were infallible are destructible. Indeed these cracks and crevices that could once be easily ignored have serious repercussions on core of human existence as a whole. What would be the most effective sealant for these growing flaws in the systems and structures we’ve built and depended on for so long.

 

It has been the primary way of  humans over the years to develop innovative means to counter the effects of unforeseen events. We live in a world that is partially exploring the possibilities of conducting business in the absence of physical attendance. Even though this seems like a huge leap to take in a year, face to face interactions is gradually being replaced by faceless interactions. With developments being made to curb the downsides of not being able to assess the physical responses and gestures of the people with whom your conduct business.

Since the pandemic presented a condition where the customer will most likely be absent from the service provider/seller at the point of value exchange. The most reasonable antidote seems to be creating a counter condition that doesn’t require the seller or service provider and the buyer/ customer’s physical presence. In line with these views, organizations most likely to survive this crisis are those with a highly digitalized background or mode of operation. Digitalization would require less face to face interactions as this is a precondition for transmission of the virus. Meaning that businesses that lean towards a physically dominant or mechanized system would have to remould the systems and this can be time intensive to say the least.

The general assessment of this current situation is that some businesses who had already initiated the move towards digitalization may have a relatively higher chance of survival as opposed to those who are now putting structures in place to survive this.

Companies with international supply chains are most likely to experience shortages in supply and bottlenecks as a result of logistic difficulties altering the supply chain.

Arundhati Roy said “Historically, pandemics have forced humans to break with the past and imagine their world anew. This one is no different. It is a portal, a gateway between one world and the next.”

 

 

Let us see what world rises from the ashes of the one we currently live in



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