MD4099 Global Economy Individual Assignment Sample
Here’s the best sample of MD4099 Global Economy Individual Assignment, written by the expert.
1. Introduction
The impact of covid19 within the economic sector of the whole world is devastating. Not only the pandemic impacted the living of the human beings in a questionable state but also impacted almost anything and everything of the business aspect within the world. The disease, being highly contagious, forced the world to a state of complete lockdown so that the spread of the disease decreases. A complete lockdown was being announced within almost the whole world which has impacted the business aspect in a humongous manner. Every industry has been shut down and every medium of transport has been cancelled for an infinite duration due to the covid19 pandemic. In the case of the United Kingdom it has been seen that the flights were cancelled, the trains were suspended and all kinds of transportation medium were cancelled as well. Not only it impacted the transport industry but also it impacted every business industry as well. Industries for not having a proper amount of transportation system failed to import their required goods. The globalization of business was affected due to the pandemic as no import or export of goods was being done due to the complete lockdown of every kind of transport medium. Globalization is the interconnection process within the world through which the world is becoming more connected along with time. Within this essay the impact of the covid 19 within the economy of the United Kingdom is going to be discussed.
2. Impact of COVID19 within the economic structure of the country
The United Kingdom is one of the most important countries that serve an important role in the globalization within different countries. The main things which are being supplied by the United Kingdom are cars, crude oils, gas turbines and gold within the world (Brown et al. 2020, p. 385). The lockdown impacted within the supplies of these materials within the oyster countries. Due to the lockdown of the covid19 none of the items were being sent to the other countries and at the same time nothing could be imported from other countries within the USA as well. This impacted the economy of the United Kingdom as well as either country in a drastic manner. The main things which are generally imported by the UK from other countries are tobacco, crude materials, animals as well as vegetable fats. None of these were exported due to complete lockdown of all kinds of transportation systems within the countries. The UK economy is a developed economical system. A decrease of 10% of GDP has been noticed within the UK after the lockdown period due to covid. The UK being one of the leading giants in terms of economic conditions, a drop of GDP of 10% is going to impact the overall economy of the world (Heald and Hodges, 2020, p. 544). The globalization of the world is going to be impacted in an overall manner due to this humongous loss of finance. In terms of business the imports as well as exports were totally stopped and that has been the prime cause that made the GDP of the country fall in such a drastic manner.
The FDI trends are falling within the UK as well. The UK is one of the key exporters of cars within the world. The covid19 pandemic has impacted the market in such a way that the cars are not being exported to the places where the demand of the UK cars is high. The revenue generation therefore is decreasing. The FDI trends are required to be taken care of after the lockdown of the covid is over so that the generation of revenue from exported items can be increased (Jeris and Nath, 2020, p. 503).
The United Kingdom responded to the situation of their countries in a specific manner to help the different businesses within the country, The UK government has set a ‘Bounce back’ scheme in order to help the small and medium enterprises (SME’s). The UK government also said that the current situation is an unforeseen situation as this pandemic has not been expected at all and every kind of help is going to be provided to the businesses within the country so that the small and medium businesses can re-establish themselves. Providing a high importance to the SMEs it also has been said that the economy of a country is being driven by the SMEs. In case of the trade business with the other countries the UK government said that they have been in contact with other countries and soon the business in a global aspect is going to be started so that the financial situation of different countries can get balanced. Loans will be given to the small and medium enterprises and financial help is also going to be provided to the big industries in order to make sure that they bounce back within the economy (Sherif, 2020, p. 403). The loan is going to be provided at a relatively lower interest rate and in case of the small enterprises no interest rate is going to be applied up to a certain amount of loan.
3. Detailed example of an industry affected by COVID
Within different other industries, the airlines and aviation industry have been affected in a drastic manner due to the lockdown for the covid19. The airlines were suspended as it carries people and goods from all over the world. If someone affected by covid can get onboard, that increases the possibilities of the rest of the countries to get affected by the covid (Brown and Rocha, 2020, p. 174). The British Airways is one of the most important airlines that carry people from all over the place. Due to the lockdown the generation of the revenue within the aviation industries has drastically decreased (britishairways.com, 2021). Different aspects which are being faced by the aviation industry are going to be discussed in a detailed manner.
Impact on people
Due to the complete shutdown of the airlines industry people have not been able to not go to anyplace from their countries. Different people have different impacts on industries and finance. Absence of people in business sectors impacted different business deals (Tahat and Ahmed, 2020, p. 18). The main profit that the aviation industry generates is from shifting people from one place to another and lockdown impacted on the British Airways in an adverse manner.
Impact on business
One of the most important aspects that airlines serve is transporting different business goods. The UK takes the help of their flights just like any other countries to import or export business materials. The lockdown has completely stopped those importations or exportations. Therefore the UK economy as well as the economy of the British Airways has also been impacted due to the lockdown of covid19 (britishairways.com, 2021).
Financial impact
The main sources of the money generation got stopped within the aviation industry due to the lockdown. The industry has been generating revenues from shifting passengers and flights but both of the activities got cancelled due to lockdown which made the generation of money harder for the companies (Wójcik and Ioannou, 2020, p. 395). The profit of the UK from the import and export of different materials got stopped due to the flight cancellation. Therefore both flights and countries were impacted by the lockdown in an adverse manner.
Impact on industries
Different industries import or export required stuff for their organization in airlines. Due to the lockdown none of the items were being delivered to the industries that impacted the performances of the industries as well as the revenue generation of the airlines. The British Airways got affected in a bad manner overall due to the impact of the covid19 within the industry.
The impact of the COVID19 within the aviation industry is huge. A huge number of employees within the airlines have not been able to avail salary during the lockdown period and the savings of the people has been spent to live their life. The overall economic situation of the people has fallen and the people are not in a state to buy things which are relatively cheaper. The falling down of the general financial situation of the people impacted within the situation of the country as well. The government although has announced a loan scheme with lower rate of interest for the sectors which are in requirement of it (Sandhu and de Wolf, 2020, p. 740). It is expected that the British airways along with the whole aviation industry is going to revive in a proper manner so that they can come out of the current loss in which they have been running.
4. Overall implication of the COVID within the financial thought process of the country
Response of UK towards covid
The country has responded to the damage that has been done by covid in a pretty responsible manner. It can be seen that the government of the UK has been prioritizing the small and medium industries more to revise the current financial state within the country (Malhotra and Stanier, 2020, p. 381). As an initial response the government of the UK has announced a different loan scheme where either the interest rate is low or there is not going to be any kinds of interest rate at all. Providing money to different business enterprises is going to help those enterprises in order to revive in a proper manner.
In case of the big businesses the country is taking initiatives so that globally business can be initiated as soon as possible. Within the post covid scenario the transportation system has started to work (Zeren and HIZARCI, 2020, p. 82). It is expected that soon enough the trades and the businesses internationally can be done by the country.
Long term strategy to improve globalization
In order to improve globalization the business with all around the globe is required to be prioritized. The global business is required to be strategized initially so that the probability of complications arising later mitigates (Izzeldin et al. 2021, p. 671). A better skilled as well as increased working ability within the workers is required to be created so that the globalization rate increases. The improved ratio of trades and improved trade policies can help improve globalization. Increased amount of labor accelerates product generation within the industries and the rate of importation or exportation increases. This speeds up the overall process of globalization within different countries and helps those countries to generate a relatively higher amount of revenue (Chiah and Zhong, 2020, p. 784). The UK needs to implement perfect strategies in order to increase the implementation of globalization within the businesses of the countries.
5. Conclusion
The COVID19 pandemic has impacted every aspect within the world. From business to school college’s offices everything has been closed due to the pandemic that took place. It has been highly important to lockdown the world in order to prevent the spread of the dangerous disease. The disease has been highly impactful within different businesses in an adverse manner. Impacting the businesses within every country the corona virus has impacted the livelihood of millions of people. The savings of the people got wasted as the income was none due to the lockdown while spending of the money was good. The economic situation of the people dropped down in a drastic manner. A relatively poor people is not going to be able to purchase relatively costlier things therefore it can be said that the covid pandemic impacted on the economic condition in a negative manner. The airlines industry has been shut down totally which impacted the lives of people as well as the lives of the employees of aviation industries. The government of the UK has been trying its best to provide the small and medium business sectors with required amounts of loans to increase the possibilities of the small scale business to bounce back into the economy. The small scale and medium scale businesses are the pillars of the economy of a country and the UK government apparently has been helpful enough towards the small and medium scale businesses. The providence of loans towards small scale businesses are going to help the businesses to bounce back into the economy. The covid impacted within this process of globalization as all kinds of import or export of goods that has been helping the business aspect within the world has been stopped.
References
britishairways.com, 2021, Abouts. Available at:https://www.britishairways.com/travel/home/public/en_in/[Accessed on: 5th April, 2021]
Brown, R. and Rocha, A., 2020. Entrepreneurial uncertainty during the Covid-19 crisis: Mapping the temporal dynamics of entrepreneurial finance. Journal of Business Venturing Insights, 14, p.e00174.
Brown, R., Rocha, A. and Cowling, M., 2020. <? covid19?> Financing entrepreneurship in times of crisis: Exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom. International Small Business Journal, 38(5), pp.380-390.
Chiah, M. and Zhong, A., 2020. Trading from home: The impact of COVID-19 on trading volume around the world. Finance Research Letters, 37, p.101784.
Heald, D. and Hodges, R., 2020. The accounting, budgeting and fiscal impact of COVID-19 on the United Kingdom. Journal of Public Budgeting, Accounting & Financial Management.
Izzeldin, M., Muradoğlu, Y.G., Pappas, V. and Sivaprasad, S., 2021. The impact of Covid-19 on G7 stock markets volatility: Evidence from a ST-HAR model. International Review of Financial Analysis, 74, p.101671.
Jeris, S.S. and Nath, R.D., 2020. Covid-19, oil price and UK economic policy uncertainty: evidence from the ARDL approach. Quantitative Finance and Economics, 4(3), pp.503-514.
Malhotra, S. and Stanier, J., 2020. UK Biotech Corporate Finance Trends Post COVID-19. Biotechnology Law Report, 39(5), pp.381-384.
Sandhu, P. and de Wolf, M., 2020. The impact of COVID-19 on the undergraduate medical curriculum. Medical Education Online, 25(1), p.1764740.
Sherif, M., 2020. The impact of Coronavirus (COVID-19) outbreak on faith-based investments: An original analysis. Journal of Behavioral and Experimental Finance, 28, p.100403.
Tahat, Y. and Ahmed, A.H., 2020. Stock Market Returns, liquidity and COVID-19 Outbreak: Evidence from the UK. Stock Market Returns, liquidity and COVID-19 Outbreak: Evidence from the UK, pp.1-19.
Wójcik, D. and Ioannou, S., 2020. COVID‐19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres. Tijdschrift voor economische en sociale geografie, 111(3), pp.387-400.
Zeren, F. and HIZARCI, A., 2020. The impact of COVID-19 coronavirus on stock markets: evidence from selected countries. Muhasebe ve Finans İncelemeleri Dergisi, 3(1), pp.78-84.
________________________________________________________________________________
Know more about UniqueSubmission’s other writing services:
