5 people are having a discussion on the topic (Amanda, Ben, Charlie, Danielle, Emma). The GD Topic is Coronavirus Pandemic & Its Impact on Global Economy & Business
Category: Business, Economy, Health
Amanda: Good morning all! The topic for today’s group discussion is the impact of the pandemic of coronavirus and its impact of global economy as well as business across the world. The Coronavirus disease, which started in Wuhan in China, is spreading across the world, despite the lockdown by China as well as other countries. And since the virus infected cases are coming from across various geographies, this is having an impact on the Chinese economy as well as global business.
Ben: China is a world leader in exporting goods all across the world. Because the virus spreading in China, there has been a lockdown preventing people from going to work. This is such widescale that it is hampering the businesses which are present in China. Manufacturing in China has been down the spiral which is leading to a widescale global financial impact. China accounts for one-third of the world’s manufacturing.
Charlie: As a part of the quarantine rules in China, more than 300 million workers across Chinese companies have been asked not to work as a precaution. Because of this, the overall production has declined to 50%-60% of the actual capacity. Till the time the coronavirus related cases are reduced, these numbers will continue to impact Chinese & global economy.
Danielle: The impact is not only restricted to China. Many industries are suffering because of the Coronavirus outbreak. The airline & tourism industry has been hit severely across China & Europe where cases have been identified. The airline industry has said if the Coronavirus keeps on spreading, airlines could lose close to $30bn. 5 star hotels & airline companies have been seeing cancellations as governments are also not issuing visas to countries where cases are spreading.
Emma: Apart from airlines & tourism, automobile companies are feeling the heat because of shortage of supplies of automotive parts & accessories. China is a world leader in manufacturing automobile spare parts for some of the leading companies like Jaguar Land Rover. Even luxury companies like Hermes are struggling to meet to the demand as he supply has been negligible since the start of the pandemic.
Ben: The Coronavirus has also lead to the global meltdown on the stock market. NYSE, London’s FTSE, Dow, Nasdaq have all been rolling down since the virus has spread globally. Investors have thought to have lost more than $400bn as a result of plummeting share markets.
Charlie: Even technology giants like Microsoft, Apple have been facing loss of business. As a result of this, banking industries & financial institutions are facing a crunch, and have forecasted that there would no economic growth this year unless the virus outbreak is controlled.
Amanda: Since all business these days are inter-woven, and since China is the epicenter of global business, these financial & business impacts will continue to grow till the time the virus is controlled.
To summarize, the spread of Coronavirus is impact business across the world. This is worrisome as the virus is still spreading and all industries are getting impacted because of this. Not only companies, but governments are also getting impacted, and they need to start planning to avert any economic crisis, which would lead to several more ramifications globally.
1. China accounts for one-third of the world’s manufacturing & is the world’s biggest exporter.
2. 300 million workers across Chinese companies not working, resulting in 50% drop in production.
3. The airline industry has said if the Coronavirus keeps on spreading, airlines could lose close to $30bn.
4. Most impacted industries: manufacturing, airline, tourism, automobile, technology & banking
5. Most impacted countries: China, Italy, Japan, UK & other European countries.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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