JEON ASHLEY

12- ABM

Activity 1
Enumerate the five effects of the global pandemic on the international trade and
economic performance of the country. Give at least five (5) effects.
1. A supply shock consisting of a drop in employment,
2. A raise in the cost of international trade imports,
3. A sharp drop in international tourism and travel-related services, and
4. A demand switch by households who purchase fewer services requiring close human
interaction, such as mass transport, domestic tourism, restaurants, and recreational
activities, while redirecting demand towards consumption of goods and other services.
5. Supply-chain contagion amplifying the direct supply shocks as manufacturing sectors
in less-affected nations find it harder and/or more expensive to acquire the necessary
imported industrial inputs from the hard-hit nations, and subsequently from each other.
Activity 2
1.What is international trade?
- International trade, economic transactions that are made between countries. Among
the items commonly traded are consumer goods, such as television sets and clothing;
capital goods, such as machinery; and raw materials and food.
2.What is the importance of international trade on the economy?
- International trade between different countries is an important factor in raising living
standards, providing employment and enabling consumers to enjoy a greater variety of
goods.