Effects of Covid-19 pandemic on world trade

Fortunately, now that we have some perspective on the Covid-19 pandemic, we can
analyze the impact of this global problem in globalization. If we understand
globalization as a process of communication and interdependence among different
countries, we can see that it has been influenced by the following. In the face of the
coronavirus, the central government did not hesitate to act, blocking tourist
exchanges, trade and closing borders. To analyze the impact of Covid-19 on
globalization, we have divided the report into different points:
Economy: Trade in services fell 20% between 2019 and 2020. The pandemic has not
hit all sectors of the economy equally, for example, sectors such as auto retail have
seen a marked decline, while we have seen significant growth in the pharmaceutical
sector. In addition, due to prolonged quarantines, limited displacement, job losses
and falling incomes have led to a decline in trade, affecting industries such as
catering, hotels and tourism.
Tourism: Tourism has been one of the most affected sectors due to border
restrictions and closures. Globalization was facilitating exchanges between countries
and facilitating tourism, but the pandemic forced it to a standstill, resulting in a 73%
decline in tourism compared to its number one position in 2019.
Culture: Cultural deglobalization of almost 20% is due to a worldwide decline in the
production of commercialized audiovisual services such as films and series, as well as
a lack of activities related to cultural assets.
Important advances in digitization: With the sudden onset of the pandemic, companies
and institutions were forced to find new ways to continue their activities without a
physical presence. In this context, telecommuting and the use of the Internet are
becoming more and more important. Schools and universities must find new ways to
learn online, and organizations must find innovative ways to meet and schedule. As a
result, e-commerce has achieved the most significant boom since its inception, as
society continues to demand basic necessities, office supplies, and leisure products.
The ease of digitization means that these sudden and forced changes will persist even
after the main effects of the pandemic on April 1 have passed.
Implementation of protectionist measures: These measures restrict imports by
erecting legal and economic barriers. This measure increased consumption of
national products and created tension in trade relations between countries.
In conclusion, we can say that post-pandemic globalization will not be the same for
two main reasons, one of which is the weakening of the homogeneous US leadership.
Without such leadership, international cooperation will be difficult. Another reason is
that the pandemic has resurfaced the idea of a large interventionist state and
imposing protectionist measures.