Contents

Introduction.................................................................................................................................................2
Covid-19 Effects on Stock Markets..............................................................................................................2
Covid-19 Effects on Unemployment............................................................................................................3
Covid-19 Effects on Oil Price........................................................................................................................3
Closing the multiple businesses...................................................................................................................4
What can be taken to keep international trade?.........................................................................................4
Restart traveling and tourism......................................................................................................................5
Digital working.............................................................................................................................................5
Conclusion...................................................................................................................................................5
References:.................................................................................................................................................6

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Introduction
The COVID- 19 pandemics has created significant health, social, economic challenges
worldwide, and will continue to have significant impacts especially on the business involved in
international trade and commerce. Covid-19 has a great impact on economics from all the sects
such as government sects and private sects. In this report, I will mainly focus on the economic
effects of this virus which caused a huge amount of unemployment and to a certain extent, it has
led some businesses bankrupts. I will also explain other effects of Covid-19 on different types of
economy.

Covid-19 Effects on Stock Markets

Most stock prices have tumbled due to lower demand for products and services. This has created
plenty of opportunities for short-sellers to benefit from shares that are nose-diving or for
investors to purchase undervalued stocks. It is clear that bear markets don’t reverse overnight.
However, the Coronavirus crash is not like any crash we’ve seen – considering that it was not
caused directly by the bursting of a bubble or a debt crisis. In other words, a market crash can
come when it is completely unexpected.
Results indicate that stock market return seems to be sensitive to Coronavirus cases more than
deaths, and to Coronavirus cumulative indicators more than new ones. Besides, a robustness
check confirms the negative effect of Coronavirus spread on stock market return for China,
France, Germany, and Spain. However, these effects haven’t been confirmed for Italy and the
United States.

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The COVID- 19 pandemics has created significant health, social, According to BBC “Global
markets did also recover some ground in late March after the US Senate passed a $2 trillion
(£1.7tn) Coronavirus aid bill to help workers and businesses”. Also, investors fear the spread of
the Coronavirus will destroy economic growth and that government action may not be enough to
stop the decline.

Covid-19 Effects on Unemployment

Since the pandemic hit, claims for unemployment benefits have soared in some countries –
notably the US – and by far less in others, for example, Japan. Hundreds of millions of people
could be left without work due to the impact of COVID-19, the UN’s work agency warns Since
the pandemic hit, claims for unemployment benefits have soared in some countries – notably the
US – and by far less in others, for example, Japan.
According to BBC the number of unemployment in the USA alone has grown way more than
expected or estimated. That led the nation to have a congressman’s come together to produce
legislation in the supportive of its people. Look at the graph below which explained by the BBC.

Covid-19 Effects on Oil Price

Demand for oil has all but dried up as lockdowns across the world have kept people inside. The
crude oil price had already been affected by a row between OPEC, the group of oil producers,
and Russia. Coronavirus has driven the price down further. For the first time in American
history, their oil price has reduced to the lowest ever, in fact, the American oil price has gone
down to the negative number which means they had to pay a certain amount of dollars to get rid
of their oil from their tanks and transferring ships.

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Closing the multiple businesses
As Covid-19 has already become a reason for closing the multiple businesses and closure of
supermarkets which seems empty nowadays. Therefore, many economists have fear and
predicted that the pandemic could lead to inflation. For instance, Bloomberg Economics warns
that “full-year GDP growth could fall to zero in a worst-case pandemic scenario”. There are
various sectors and economies that seem most vulnerable because of this pandemic, such as, both
the demand and supply have been affected by the virus, as a result of depressed activity Foreign
Direct Investment flows could fall between 5 to 15 percent. Besides, the most affected sectors
have become vulnerable such as tourism and travel-related industries, hotels, restaurants, sports
events, consumer electronics, financial markets, transportation, and overload of health systems.
Diane Swonk, Chief Economist at the Advisory Firm Grant Thornton, explained that “various
nations have multinational companies that operate in the world because the economy is global.
For instance, China has touch points into every other economy in the world, they are part of the
global supply chain.

What can be taken to keep international trade?

Governments are – necessarily and rightly – providing huge amounts of support to prevent the
COVID-19 crisis from destroying livelihoods, businesses, and production capacity. But once the
waters ebb, governments will need to take a careful look at the measures in place to ensure that
they have not become sources of unfair competition and distortions in the global economy.
While this is tomorrow’s problem, the way such support is designed now will affect the shape of
the global economy to come, and whether that economy benefits – and is seen to benefit –
everyone. For instance, in KRG despite the pandemic crisis, there is an economic crisis that

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belongs to some years. People can’t afford it without working. And the government can’t give
them salaries. So the government should consider this situation.

Restart traveling and tourism

According to the World Tourism Organization, the international tourist arrivals will be down by
20% to 30 % in 2020 when compared with 2019 figures, equivalent to a loss of 300 to 450$
billion dollars in international tourism receipts. In this way, from my point of view. The
government should immediately reopen airports. Because it’s the main source of every countries
GDP. Any delay in this sector will affect our trade tourism.

Digital working
With the current crisis, it seems that many more enterprises see digital transformation as one of
the solutions to this problem. Due to online working, countless jobs work online, like Amazon.
Small businesses can consider this issue to continue their business. They shouldn’t be closed if
they proceeding by it. For example, private schools and universities can give their students
online study, and also many banks can lend money by online credit cards to those who can’t
work in this era.

Conclusion
The COVID-19 pandemics has made critical wellbeing, social, financial difficulties around the
world, and will keep on having noteworthy effects particularly on the business associated with
global exchange and trade. Covid-19 greatly affects financial matters from all the organizations,
for example, government factions and private groups. In this report, I will for the most part
center around the monetary impacts of this infection which caused an immense measure of
joblessness and somewhat, it has driven a few organizations bankrupts. I will likewise clarify
different impacts of Covid-19 on various sorts of economy.

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References:

https://www.bbc.com/news/business-51706225

https://moderndiplomacy.eu/2020/04/22/impact-of-covid-19-on-global-economy-structure/

http://www.oecd.org/coronavirus/policy-responses/covid-19-and-international-trade-issues-and-
actions-494da2fa/

https://www.policycenter.ma/opinion/impact-covid-19-tourism

https://www.reworked.co/leadership/digital-transformation-a-solution-for-enterprises-facing-the-covid-
19-downturn/