Impact

of

COVID-19
on

GLOBALISATION
 What is
Globalisation?

Globalization is the process of interaction and

integration among people, companies, and
governments worldwide. It has accelerated since
the 18th century due to advances in
transportation and communication technology.
TRANSFER TRANSFE
TRANSFER
TRANSFER TRANSFE
TRANSFER TRANSFE
development thoughts

TRANSFER TRANSFE
TRANSFER TRANSFE
TRANSFER
TRANSFER TRANSFE
goods

im
TRANSFER TRANSFEpo
rts
DI
F
development thoughts

TRANSFER TRANSFE
TRANSFER TRANSFE
TRANSFER
TRANSFER TRANSFE
goods
iefs tradit

im
bel ions

TRANSFER TRANSFEpo
rts
I cult
D ure
F
development thoughts

TRANSFER TRANSFE
TRANSFER TRANSFE
TRANSFER
TRANSFER TRANSFE
goods
iefs tradit

im
bel ions

TRANSFER TRANSFEpo
rts
I cult
D ure
F
development thoughts

TRANSFER TRANSFE DISEASES

COVID-19
 What is COVID-19?

Coronavirus disease 2019 (COVID-19)

is a contagious disease caused by
severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2). The first
case was identified in Wuhan, China
in December 2019. It has since
spread worldwide, leading to an
ongoing pandemic.
 Georgraphic Distribution

USA EUROPE
Europe (including the
The US, which has 4.3%
EU, UK, Switzerland, and
of the world's
Norway) with 6.7% of
population, accounted
the world’s population
for 31.4% of infected
accounted for 28% of
people in the world.
infections.

as of 18 May, 2020
 Georgraphic Distribution

USA
The US, which has 4.3%
of the world's
population, accounted
for 31.4% of infected
people in the world.
about the 60% of the
COMBINED
EUROPE
Combined, the 11%
Europe (including the
of the world EU, UK, Switzerland, and
population living in Norway) with 6.7% of
the US and Europe the world’s population
was responsible for accounted for 28% of
infections.
infected people in
the world.

as of 18 May, 2020
13
15
7 10 4 3
12 1
2 6 11
22 5
8 9

14
13
15
7 10 4 3
1
12 6
2
22 5 11
8 9

14
Impact of COVID-19:
An Overview
 BEFORE BEGINNING
Signs of Countries getting
Decoupled from the Global
Economy
Ratios of trade to gross domestic product
(GDP) declined. China showed this tendency
prominently. In 2008, China’s trade to GDP
ratio was close to 58%, but a decade later it
was barely 38%. India showed a similar
tendency: its trade to GDP ratio reached
nearly 56% in 2012 but was down to 43% in
2018.
Impact of COVID-19:
An Overview
Globalisation = Movement
Abandonment of movement. Which implies, abandonment of globalisation.

Decrease in Performance of Industries

Decrease in production, consumption, employment, and supply chain.
Detailed Analysis
of
MOBILITY
COVID-19 Impact Air Travel
Sea Travel
Impact on Major Industries
Event Cancellation
Impact on Workforce
Impact on Healthcare Facility
Food and Agriculture
Academic Institutions
Trade
 MOBILITY
Revenue passenger count was down
90% year-on-year in April 2020 and
75% in August. The collapse in
economic activity and trade affected
freight, which was almost 30% lower
year-on-year in April and about 12%
lower in August. Passenger count
moved from 4.5 billion to 2.2 billion.
Out of about 50 cruise line owners, 3 are
the most prominent players in the
industry.
These 3 cruise line tycoons, Carnival
Corporation & PLC, Royal Caribbean
Cruises LTD, and Norweigan Cruise Line
HLD, which control 75% of the market,
experienced 70% drop in their share
price.
 MAJOR INDUSTRIES
The 2020 Summer Olympics to be
held in Japan was rescheduled for
2021. Other sports, cinematic and
theatrical releases had also been
postponed.
Almost 1.6 billion informal economy workers are
significantly impacted by the lockdown
measures. The most affected include about 54%
of employers worldwide who account for 30% of
average GDP.
HEALTHCARE CAPACITY

One possible silver lining of COVID-19, is a boost to

technology and innovation directed at global public health.
According to Bill Gates, accelerated progress might be seen
in:-
-The development of mRNA vaccines.
-Diagnostics and testing.
-Antiviral drugs, which has been an underinvested branch of
science.
FOOD & AGRICULTURE
Geographically speaking, dairy farmers in
America consider 14 million litres of milk
being dumped every day due to
interrupted supply chain. In England, chair
of dairy farmers reported that
approximately 5 million litres of milk was
at risk in one week. Also, it was reported
that tea plants were lost because of the
logistical challenges in India.

Compared with 2004, rice prices increased by 224%, wheat prices by 108%, and corn prices
by 89% in India. When the effects of restrictions on importing countries are evaluated, it is
seen that Tajikistan, Uzbekistan, Afghanistan, and Azerbaijan were negatively affected by
79%, 70%, 61%, and 54%, respectively.
ACADEMIC INSTITUTIONS
Most institutions moved classes online and cancelled in-
person classes. Results from a survey showed that almost
10% of institutions do not have the facilities and
infrastructures in place to conduct online classes, and most
of these institutions are in Africa. Limited flexibility was
observed in the United States from restricted use of grant
funding to alleviate the impact of COVID-19.
Nationwide closures affected over 91% of the universes’
pupil populace in India. UNESCO estimates that round 32
crores college students are affected in India, incorporating
these in faculties.
According to a report, 38 universities in Australia were expected to collectively lose 3.3 billion AUD due to
the loss of international students alone. In the UK, 13 universities were expected to face bankruptcy due to
COVID-19. With an approximate decrease in enrollment by 50% among incoming international and 10%
among local students, an estimated loss of 11 billion pounds had been reported, including revenue from
non-academic venues such as accommodation and services.
 TRADE

The World Trade Organization (WTO) had estimated that in a worst-case scenario, global trade could
dip as much as 32%, indicating the kind of dislocation they expected in large economies. In India, for
instance, the disruption was visible — almost 50% of our trade was directly linked with the micro, small
and medium enterprises (MSMEs) sector as even large players sub-contracted to the smaller
producers. World trade had never really recovered since the global financial crisis — from a 10% growth,
it had been hovering around 1%-2%. Harvard Business Review forecasted 13-32% decline in
merchandise trade and a 30-40% reduction in foreign direct investment.
How firms have been expected to react?
1. Start with global growth patterns
Global business leaders could be going beyond just
watching disease trends and economic data — they can
help tilt the balance from negative to positive feedback
loops by contributing to health, growth, and international
cooperation.
2. Supply chain policies
Economic logic almost always favors the 'greater safety in
international diversification' approach, coupled with
national stockpiles for true essentials, but politics would
sometimes force them to try fostering domestic self-
sufficiency.
3. Superpower frictions and fragility
Firms are expected to be ready for the possibility of a more
regionalized world, but not count on it.
4. Ongoing technological shifts
Business leaders can think productively about Covid-19,
technology, and globalization, by taking a structured
approach to consider both internal and external
implications.
5. Public opinion
Customers and employees increasingly expect corporate
leaders to take a stand on social issues, making public
opinion about globalization, a potential management issue.
Impact of COVID-19:
An Overview
Globalisation = Movement
Abandonment of movement. Which implies, abandonment of globalisation.

Decrease in Performance of Industries

Decrease in production, consumption, employment, and supply chain.

On the Brighter Side..

Online Market became the New Black
Developers and service enablers which have online/virtual earned the most profit. EG, Amazon, Zoom etc.

Regain of Productive Capacity

Countries who lost their Production Capacity to China in the past 15 years got the opportunity to re-enter the
race.
Thank You
Thank You
https://hbr.org/2020/05/will-covid-19-have-a-lasting-impact-on-globalization
https://www.sciencedirect.com/science/article/pii/S2352771420302810#:~:text=Thus%2C%20global
ization%20has%20led%20to,number%20of%20COVID%2D19%20cases.
http://www.oecd.org/coronavirus/policy-responses/covid-19-and-the-aviation-industry-impact-and-
policy-responses-26d521c1/
https://home.kpmg/xx/en/blogs/home/posts/2020/07/covid-19-impacts-on-global-cruise-industry.html
https://www.imd.org/research-knowledge/articles/Globalization-after-COVID-19-Whats-in-store/
https://www.thehindu.com/opinion/op-ed/will-covid-19-affect-the-course-of-
globalisation/article31303655.ece
https://academic.oup.com/fqs/advance-article/doi/10.1093/fqsafe/fyaa024/5896496
https://www.newindianexpress.com/opinions/2020/jun/11/covid-19-what-is-the-future-of-globalisation-
2155073.html
https://voxeu.org/article/globalisation-and-covid-19-pandemic
https://www.indialegallive.com/legal/covid-19-and-its-impact-on-education-system-in-india/

https://www.thinkglobalhealth.org/article/updated-timeline-coronavirus
https://www.gavi.org/vaccineswork/5-ways-coronavirus-could-impact-future-global-health
Thank You

Nayan Jain
10121201719
BBA-General-2nd Yr-Section B