Anandra Raaditya Putra Graha

215030207111158
UTS Bisnis Internasional
The COVID-19 pandemic has had a very bad impact not only on Indonesia but the
whole world. The recession that occurred caused havoc everywhere and people from all
walks of life felt the impact. Governments from various countries are busy to find the right
solution for this problem. The economy declined drastically which caused this and the
circulation of money became unstable. The flow of money that was stopped due to the
pandemic in international business made the stock market fall in value, many companies
were forced to lay off their workers, many start-ups could not fundraise, and even threatened
to go bankrupt. In response to this, the Federal United States of America carried out large-
scale printing of money and distributed it to citizens voluntarily with the aim of making money
return to happen (expenditures for households, increasing investment rates and so on).
However, the US was late in realizing that too much money in circulation would lead to
inflation. Prices rise due to the circulation of too much money. Finally, the US took the
decision to withdraw the money from circulation by tightening (raising interest rates). If
interest rates rise, then the minimum interest from the bank that must be provided will
increase. The hope is that people will put their money into the bank to put their assets in the
bank (passive assets) rather than spending their money. But on the other hand, rising
interest rates also apply to debt, loans, and installments. So that those who owe in the end
have to pay back much more money due to rising interest rates. The impact is clearly felt
and essentially makes all poorer (individuals, companies, start-ups, etc).

The war between Russia and Ukraine also has the potential to cause the world
economy to fall. Europe and America in particular gave embargoes or sanctions against
Russia and the countries that cooperated with it so that the Russian currency went down and
up (fluctuating). But on the other hand Russia is one of the largest energy and oil suppliers in
the world, so surely other countries (especially Europe) need it. So that a new problem
arises, namely the energy and food crisis. News circulated that Europe was experiencing an
increase in electricity prices, and prices for food items rose. The crisis in Europe will certainly
spread to other countries in the world without exception. America as the strongest economic
predicate will also be affected, especially developing countries like Indonesia. As a result,
the price of oil and energy in Indonesia has also increased. But economic observers assess
this is not the peak of suffering from this recession. The peak of this disasater is the Housing
Crisis.

Some economists predict if this happens it will be a nightmare for everyone. Most
people will certainly invest in the property business and make installments in the payment
process. Referring to the tightening and rising interest rates, of course the public will find it
very difficult to pay the debt. They are forced to sell everything they have (assets) to pay for
 Anandra Raaditya Putra Graha
215030207111158
UTS Bisnis Internasional
it and end up losing everything. This event will occur all over the world including the US. One
time when the stock market crashes, house prices will drop and make rich people buy them
all at discount prices. This is where the phrase "the rich get richer and the poor get poorer"
occurs. The global economy crisis will make them lose their jobs, savings funds, and even
lose their homes. Although Indonesia has a high level of resilience, of course we have to
anticipate when this happens.

If I were an international business person, the strategy I would apply in response to

this could be divided into 2 things, the first is a defensive strategy so as not to fall into
poverty and an offensive strategy to find loopholes in order to gain profits and become rich.
My first defensive strategy will be to disburse passive assets that have the potential to fall in
the future to be stored in money market mutual funds or fixed market funds. And further
develop in assets that are not volatile and without a lock-up period so that they can be
withdrawn at any time. Then rethink when to owe, make installments on assets or goods to
be purchased. The trick is to minimize debt that is consumptive in nature and evaluate and
project what can be owed. Also pay attention to debt with lower interest rates so that it can
be used as a solution. As an international business person, you must also prepare an
emergency fund if the worst things happen. Then for the offensive strategy, you can do an
analysis by reading the market when to buy the right asset if the price will soar high. Monitor
high risk and low risk assets and decide which type to invest in. In my opinion, the most
suitable for international business people is to read about opportunities to do business that is
always stable and export to the layers of society that need it the most. Here the most
possible is to do energy and health business because both are the most certain things. It can
also adapt a business that is racing against the changing seasons, such as in a country that
has 4 seasons. From there, you can formulate an appropriate business for the situation.
Business people also need to cooperate with the government, especially regulations
regarding business regulations between countries. This will certainly make it easier to carry
out business operations in international scale.