The impacts of covid 19 have greatly been felt on international trade relationships. The impact of the covid 19 pandemic is being felt in most sectors. This ranges from education and health to the economy. However, the magnitude of this impact varies from country to country with the worst struck country feeling a heavy impact. Additionally, it is a global shock that causes disruptions to both supply and demand in an interconnected world economy. In terms of the supply, it has led to a reduction in the availability of labor due to the lockdowns and business closures. Additionally, social distancing disrupts supply too.
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THE SOCIOECONOMIC IMPACTS OF COVID 19
Like many other sectors, the impacts of covid19 affect the socioeconomic sector. For countries facing food poverty, the closure of open markets and border points has led to the disruption of livelihoods of people, therefore, putting a risk on the food security of countries. Also, the increase in new infections leads to a reduction in the labor force, therefore, reducing productivity that affects international trade relationships. Moreover, there is a disruption on public transport due to the government measure in stopping the spread of the virus. Consequently, this increases transport charges to help cater for fuel costs. Lastly, it affects the rent and housing sector since the reduced earnings as a result of the pandemic leads to missed payment of rent.
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FACTOR AFFECTING INTERNATIONAL TRADE RELATIONSHIPS
Various factors affect international trade relationships. Firstly, inflation whereby an increase in a country’s inflation rates leads to a decrease in current accounts. This, therefore, discourages customers and cooperation’s from trading with the country. Secondly, government policies have an impact on international trade since the policies touch on subsidizing exports, restrictions on imports, and lack of enforcement. Thirdly, the current impacts of covid 19 which has led to the closure of borders, therefore, leads to a decline in the importing and exporting of goods. Lastly, the exchange rates of countries. This is because a country’s currency is value in terms of other currencies using exchange rate hence facilitate international trade.
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