ALTINBAŞ UNIVERSITY

2023-2024 FALL
ECON 103 PRINCIPLES OF MICROECONOMICS
HOMEWORK - ESSAY

StudentNumber - Name SURNAME

Course Instructor: Asst. Prof. Nevzat Barış VARDAR

The world-wide lack of computer chips in recent times has had big effects on the global economy.
This came from many different reasons.
People are using more electronic stuff like phones, tablets and laptops. This is causing a big need
for something called semiconductor chips. This higher need has made chip makers work harder to
make more chips.
The COVID-19 pandemic has messed up chains all over the world. This makes it hard to get things
needed for making chips. This has made it harder for the chip-making industry to keep up with
demand.Problems between the US and China, along with other world issues have messed up how
computer chips are made worldwide. This has caused problems with the supply of chips.
The world's lack of electronic chips has had a big effect on our economy. It affects many
industries and supply chains. Because of the shortage in semiconductor chips, production is slowing
down or being stopped completely in areas like cars, electronics for consumers and equipment for
industry. This has made less money for businesses and caused a drop in total work done.The chip
shortage messed up supply lines all over the world, making it late to make things and give them out
in many types of industries. This has hurt not just makers of electronic gadgets, but also businesses
that need these things for their own stuff. The lack of chips is making electronics and products
depending on computer chips cost more money. This has added a lot of cost pressure in some parts of
the economy, affecting how much people can buy. It might also cause higher prices for many things
people want to get. Slow-downs and closures in factories hurt by the chip shortage have caused
workers to lose jobs or work fewer hours.
Overall, the global shortage of electronic chips has had far-reaching effects on the world
economy, impacting production, supply chains, employment, costs, and innovation. Addressing the
underlying causes of the chip shortage and building greater resilience in global supply chains will be
important for mitigating these effects and supporting economic recovery.
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