GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student ID
Student name: Nguyễn Thanh Nhật number: B1112014049
Student ID
Student name: Lê Ngọc Kim Ngân number: B1112015311
Student ID
Student name: Nguyễn Hoàng Bảo Trân number: B1112015166
Student ID
Student name: number:
Student ID
Student name: number:

UNIT AND TUTORIAL DETAILS

Unit name: Academic English Unit number: AEn-S320WSB-2

12a.m-3.15pm
Tutorial/Lecture: Class day and time: on Tuesday
Lecturer or Tutor name: Anna Loseva

ASSIGNMENT DETAILS
Analyse short-term and long-term economic effects of the Covid-19
Title: pandemic.
Length Due
: 1334 words date: 09/11/2020 Date submitted: 09/11/2020

DECLARATION
I hold a copy of this assignment if the original is lost or damaged. 
✔
I hereby certify that no part of this assignment or product has been copied from any other student’s
✔ work or from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in
✔ another (previous or current) assessment, except where appropriately referenced, and with
prior permission from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person
✔ except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator
concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software
✔ programs for the purpose of detecting possible plagiarism (which may retain a copy on its
database for future plagiarism checking).

Student’s signature: Nguyễn Thanh Nhật

Student’s signature: Lê Ngọc Kim Ngân
Student’s signature: Nguyễn Hoàng Bảo Trân
Student’s signature:
Note:  An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration
has not been signed.

The beginning of Covid-19 was in December, 2019. On March 11th, 2019, the
WHO claimed that Covid-19 was the global pandemic. Then many attempts had been
proceeded to aim to prevent the rapid spread of the pandemic such as social-distance,
quarantine, and so on. Although the spread rate has declined, the consequences have
still remained and humans have to suffer from several difficulties and changes that
have arisen from Covid-19. As can be seen that the most noticeable issue is the effect
on the economy during the period of Covid-19, particularly short-term and long-term
effects, which will be discussed in this essay. In short-term effects, Covid-19 might
have changed people’s lifestyles significantly, people prone to use Internet shopping,
and some certain goods unexpectedly becoming more popular, which led to some
industries growing well. Furthermore, the prevention of Covid-19 also caused some
detrimental impacts on the global economy and many sectors, especially tourism and
the oil industry. These preventive measures have also had an effect on degraded job
levels. Not only has the short-term influence on the economy, but also the long-term
impact of Covid-19 has triggered labour shortages, malnutrition and a lack of
expertise and productive capacity. In addition, this pandemic also contributes to long-
term inflation and financial deterioration, which will make the planet struggling to
rehabilitate the economy as a whole.

The economy had some short-term changes that were observed in the Covid-
19 outbreak. Firstly, the shopping habits of people have changed considerably, which
may impact the global economy. More people tend to use Internet shopping since
their shopping patterns have substantially changed due to their adaption to Covid-
19. Research and Markets (2020) has shown that fewer people go shopping at
physical locations such as supermarkets, shopping centers, stores, and so on in order
to protect themselves and societies from Covid-19 infectiousness. Some strategies to
prevent people from catching diseases such as limited physical interaction and
quarantine were also the reason why people choose to purchase online. It is the
internet consumption patterns in Brazil that have changed dramatically, with a higher
percentage of Internet consumers purchasing vital items, especially food and drinks,
cosmetics and medicines, said Barbosa (2020). As a result, E-commerce has
flourished dramatically in the age of Industry 4.0 and replaced shopping at brick and
mortar locations during the catastrophic event. Furthermore, the consumption of
healthcare products or household appliances has been upward noticeably, particularly
masks, hand washing liquid, and others. Secondly, for protecting individuals’
purposes, many strategies had been carried out to prevent the spread of the Covid-19
pandemic, which may cause some negative impacts on the economy. To be more
clear, various factories had to stop their work due to the inability to export or import
and the shortage of workers. According to Davidson (2020), the pandemic led states
to close down restaurants, malls and other outlets across the country to minimize
contagion. In addition, transportation is limited in order to reduce the transmission as
well as the contact of humans, which resulted in the reduction of oil prices
temporarily. Kutlu (2020) revealed that Crude oil prices were down as a new record
high number of novel coronavirus cases worldwide is negatively impacting the
outlook for global oil demand. Moreover, tourism had seen a severe decline because
physical contact was restricted, and entering overseas countries was banned.
UNCTAD and NetComm Suisse eCommerce Association (2020) have shown that
tourism suffered from the highest fall of average spending per month since COVID-
19. This evidence led to the deterioration of numerous businesses and enterprises,
especially some small businesses that had to go bankrupt due to the damages such as
reduced customers and finances, which resulted in the increasing rate of
unemployment and crisis of the countries. 

Regarding the long-term effects of the economy, there are many remaining
consequences mentioned in this paragraph, lasting for a long period of time according
to the global economy. The International Monetary Fund(IMF) (2020) claimed that
the world will cope with plenty of challenges and difficulties according to economic
recovery after the Covid-19 crisis in many months, even in many years due to the
most trouble was that a mass of infection cases have been rising constantly. Due to the
Covid-19 outbreak, multiple payments for social welfare had to be available whereas
many firms are forced to disrupt their manufacturing work, which has caused
starvation and the deterioration of finance for a long period of time. The elder and
people having various medical histories like diabetes, high blood pressure, and heart
disease are easy to be infectious, especially, the U.S. and numerous European
countries which had population aging as a serious trouble must be affected extremely.
Besides, these countries owning plenty of multinational corporations have a
considerable influence on the global economy. On the other hand, Burnson (2020) has
pointed out that there was one-third of job losses. The high unemployment rate in a
long time also leads to a loss of skills and productive capacity of workers. Also, the
restrictions on immigration will further hurt labor force growth. As can be seen that in
the long term effect, the economy will suffer from the labor shortage and lower skill
worker state. Burnson (2020)  also revealed the fact that after the beginning of the
COVID-19 pandemic, the overall performance of economies (total factor
productivity) has also taken a pounding. The decimation of global trade and the rapid
downturn of globalization has led to the worries of many manufacturing sectors and
has weakened their productivity output. Although welcome in several respects, remote
work has often been a barrier to core business operations, such as the completion of
time initiatives and the training of new staff. According to VOV.VN (2020),  Covid-
19 can also raise inflation. To explain, this pandemic has reduced the supply,
especially in industries where employees dare not go to work, and also this pandemic
has increased aggregate demand  which results in the gap between supply and demand
and inflation occurs. Additionally, as inflation occurs various businesses investing in
real estate will have terrible effects as the capitalization rate rises in the interest rate
situation, which decreases the gross value of the assets (Shearn, 2012). Hence, the
government should propose some solutions to reduce the long-term effects of covid-
19 on the economy.

However, there are still some good points of Covid-19 in the economy. The most
obvious point is the technology and robot development. Xiao and Fan (2020) have
shown developments and chances of technology since Covid-19 occurred. To begin
with, students experienced distance learning and employees have no choice but to
work remotely by online programs to continue their work. Therefore, the development
of technology that supports distance learning and working is flourishing. Li and
Lalani (2020) reported that over 1.2 billion students are unable to go to class, which
results in the distinctive rise of E-learning  .Secondly, with a tendency that people
spend more time at home, the online entertainment grows rapidly such as parties,
concerts online and gaming. Finally is the thriving of robots, to approach the customer
and avoid transmission, many types of robots have been designed with advanced
function. To be more specific, delivered robots, served robots in restaurant, store and
hospital are applied widely according to Zoe (2020). As a result, various
developments in technology have been motivated by Covid-19.

In conclusion, not only mental harm, but also the depreciation of the economy
is sustained by the world, particularly in many sectors such as the travel industry, the
oil industry, and so on. There are also some important economic improvements, but
further attempts should be made to remedy the economic harm caused by the Covid-
19 crisis. In both the short-term and long-term effects, this pandemic causes many
fears and anxiety about sudden changes. It is evident that the global economy has seen
a drastic fluctuation in 2020 as a result of short-term influences and a vast number of
long-period consequences tend to abide in the future world economy. Therefore,
people are likely to sustain plenty of “injury” in their lives.
 REFERENCES

Dang, H. (2020, September 3). Tác động của đại dịch COVID-19 đến nền kinh tế thế
giới như  thế nào?. Retrieved from
<http://tapchitaichinh.vn/tai-chinh-quoc-te/tac-dong-cua-dai-dich-covid19-
den-nen-kinh-te-the-gioi-nhu-the-nao-327414.html> 

Davidson, P. (2020, September 3). Coronavirus pandemic likely to leave legacy of

fear and uncertainty that holds back economy for decades. Usatoday.
Retrieved from
<https://www.usatoday.com/story/money/2020/09/03/economy-covid-19-
pandemic-long-term-economic-effects/5696187002/>

Dịch Covid-19 có thể đẩy lạm phát tăng cao. (n.d.). Retrieved, November 6th

2020, from

<https://tuyenquangtv.vn/kinh-te/202002/dich-covid-19-co-the-day-lam-phat-
tang-cao-36613e4/?fbclid=IwAR1-
jVHp7gtvHT_lQCBJMIsg1WxnM_oxYJ8mlroE6TCDEVJ9jzysen5P_6U>

Ovunc, K. (2020, July 10). Oil prices down with record new COVID-19 cases
globally.Anadolu Agency. Retrieved from
<https://www.aa.com.tr/en/energy/energy-security/oil-prices-down-with-
record-new-covid-19-cases-globally/29857>

Pattrick, B. (2020, August 26). The COVID-19 pandemic may hurt long-term
economic growth. Logistic management. Retrieved from
<https://www.logisticsmgmt.com/article/the_covid_19_pandemic_may_hurt_lo
ng_term_economic_growth_in_2020_and_beyond>
Research and Markets (2020). COVID-19 Impact on e-Commerce

& OnlinePayments, Worldwide, 2020 - Online Shopper Penetration Increases

During the Pandemic. GlobeNewswire. Retrieved from

<https://www.globenewswire.com/news-
release/2020/05/29/2040716/0/en/COVID-19-Impact-on-e-Commerce-
Online-Payments-Worldwide-2020-Online-Shopper-Penetration-Increases-
During-the-Pandemic.html>

Shearn, M. (2012). The investment checklist: The art of in-depth research. Hoboken,
NJ: Wiley.

The Long Economic Hangover of Pandemics - IMF F&D. (n.d.). Retrieved from

<https://www.imf.org/external/pubs/ft/fandd/2020/06/long-term-economic-
impact-of-pan demics-jorda.htm>

UNCTAD. (2020, October 08). COVID-19 has changed online shopping forever,
survey shows. Retrieved from

<https://unctad.org/news/covid-19-has-changed-online-shopping-forever-
survey-shows>

World Economic Forum (2020, November 20). Pioneers of Change Summit.

Retrieved from 

<https://www.weforum.org/events/pioneers-of-change-summit-2020/about>

Xiao, Y., & Fan, Z. (2020, April 27). 10 tech trends getting us through the COVID-19

pandemic. World Economic Forum. Retrieved from

<https://www.weforum.org/agenda/2020/04/10-technology-trends-
coronavirus-covid19-pandemic-robotics-telehealth/>

P. n Summit