CHAPTER 2

REVIEW OF RELATED LITERATURE

              Pandemics, like other seldom occurring calamities, have occurred in the past

and will continue to occur in the future. While we can't completely avoid the spread of

hazardous diseases, we should be prepared to mitigate their impact on society. Globally,

the current outbreak has had significant economic effects, and it doesn't appear that any

country will be spared. This is not only a problem for the economy; it affects all aspects

of life, which has resulted in a major shift in how businesses and consumers operate.

This special issue is a global effort to address some of the pandemic-related challenges

that are affecting society. 

              The COVID-19 pandemic, commonly known as coronavirus, is not just a health

concern. It has ramifications at all levels of society, with significant implications for

economic, social, educational, political, and human security. It was shown that the

epidemic has had a significant negative impact on worldwide economic growth and

development. Over the years, each country in the world has been hit by a variety of

pandemics, the most recent of which, COVID-19, has affected the whole global

community (Abodunrin and Joshua 2017). This coronavirus has put the entire world's

continents in a condition of uncertainty, rendering the world's economic strength

ineffective in combating the virus. Since the coronavirus pandemic broke out,

governments all across the world have been tasked with finding a long-term solution to

this catastrophic virus.

When there is a pandemic epidemic, it is very hard to predict what the long-term effects

will be. Because these parts haven't been looked at very much in the past, it's hard to

predict how a pandemic will affect the economy, behavior, and society in the long run,

even though there have been many pandemics in recent history. In the few studies that

have been done, it has been found that the main pandemics of the last millennium have

been linked to low returns on capital (Jorda, Singh, & Taylor, 2020). In the short term, a

pandemic makes us less interested in investing and more interested in protecting our

money. This slows down economic growth for a while after the pandemic. It doesn't

look like we'll be as conservative as we have been in the past, because the current

environment doesn't pay to save money.

To halt the spread of the COVID-19 pandemic, numerous governments throughout the

world have begun to take drastic steps. Countries and global money have been placed

under rigorous lockdown, bringing key industrial production lines to a complete halt. 

The coronavirus has caused unprecedented store and business closures around the world.

Policy requirements, downward demand movements, health concerns, and other issues

have forced stores, factories, and many other companies to close. Because owners are

unable to pay ongoing expenses and survive the shutdown, many of these closures may

be permanent. Small enterprises all over the world are expected to be seriously affected.

The number of active business owners can thus be recorded in the statistics, but there is

no means of knowing if the closures are temporary or permanent. Many inactive

business owners, on the other hand, are likely to close their doors permanently,

especially if the COVID-19-induced crisis continues. Even brief closures brought on by

the epidemic are troublesome because they reflect income losses for business owners

during the months when they are not operating.

COVID-19 pandemic has prompted an unprecedented closure of borders and airlines,

drastically limiting the movement of necessary medical personnel and supplies needed to

stop the virus's spread and preserve lives. One of the reasons the WHO advises against

travel bans is that they could disrupt the delivery of critical humanitarian and technical

assistance, as well as give countries a false sense of security. Instead, member nations

should concentrate on preparing health systems and assuring disease surveillance. As a

result of the global shutdown, unprecedented measures are now being made to offset the

unintended consequences of travel restrictions. Airlines have reduced flights and tourists

have canceled business trips and vacations, wreaking havoc on the tourism industry. The

pandemic's impact on the travel tourism business was grossly overestimated. Even

today, policymakers and tourism practitioners do not have complete knowledge of the

crisis' possibilities and impacts, which will have a massive impact on the business.

Many companies have been forced to close as a result of the COVID-19 pandemic

outbreak, resulting in unprecedented disruptions of trade across a wide range of

industries. There are several short-term difficulties that retailers and brands must

contend with, including those relating to health and safety, the supply chain, the

workforce, cash flow, customer demand, sales, and marketing, among others. However,

overcoming these obstacles does not imply a hopeful future, or even a future at all, in the

traditional sense. We will emerge from this pandemic in a significantly different world

than we were in prior to the breakout, for the simple reason that we will have learned a
 great deal from it. It's no longer possible to do business in many areas, particularly those

related to tourism and hospitality. In the present context, all organizational functions are

meant to prioritize and optimize expenditures, as well as postpone work that will not add

value. An indefinite hiring freeze has been instituted by businesses, particularly start-

ups. At the same time, the use of the internet for communication, entertainment, and

commerce is growing at a rapid pace.

References

Donthu, N. and Gustafsson, A. (2020). Effects of COVID-19 on Business and Research,

Journal of Business.

https://www.sciencedirect.com/science/article/pii/S0148296320303830

Abodunrin, O. and Oloye, G. (2020), and Coronavirus Pandemic and Its Implication

on the Global Economy

https://www.researchgate.net/publication/

341946622_CORONAVIRUS_PANDEMIC_AND_ITS_IMPLICATION_ON_GLOBA

L_ECONOMY 

Skare, M., Soriano, D. and Malgorzata, P. (2021). Impact of COVID-19 on the Travel

and Tourism Industry. 

https://www.sciencedirect.com/science/article/pii/S0040162520312956 

Devi, S. (2020). Travel Restrictions Hampering COVID-19 Response. 

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7180010/ 

Fairlie, R. (2020). The Impact of COVID-19 on Small Business Owners: Evidence from the

first three months after widespread social-distancing restrictions.

https://onlinelibrary.wiley.com/doi/full/10.1111/jems.12400