CORONA-VIRUS WONT KILL GLOBALISATION BUT A SHAKE-UP IS INEVITABLE
The worst economic downturn is expected since the Great Depression during 1930s due to covid-19 pandemic as many people state that it could unravel the globalisation altogether.
Globalisation relies on global value chains (GVCs) which are complex links that connect producers/manufacturers across different countries. These producers/manufacturers often make use of specialized intermediary inputs or goods which are produced by the overseas supplier. Due to covid-19 pandemic these links have been severely disrupted.
Although the global economy was weak in the previous year, many had high hopes for increase in the international trade following the US-China phase one trade deal which took effect on Feb 14, 2020. Covid-19 has ruined those hopes, bringing all the factories world-wide to a stand-still and also seriously disturbing the global supply chain. China plays a major role in this and according to the Chinese customs statistics, the value of products exporting from China fell by 17.2% in the first two months of 2020, while imports slowed downed by 4%.