MD4099 Individual academic essay Assignment Sample
Introduction
Globalization is a term that defines the growing interdependence between the economies, cultures and populations across the world (Beck, 2018). Globalization influences the cross border transaction of goods, technology, services, and flow of information. This essay focuses on analyzing the impact of Covid-19 on globalization and international trade in the UK. The pandemic has led to creating disruption in the flow of FDI and global internal trade. Due to the pandemic, the developing countries have been facing major challenges due to the reduction of FDI flow by 40%.
Main body
The Covid-19 pandemic has impacted the trade activities as well as other macroeconomic factors of the UK. For example, an increase in the unemployment rate, fall in GDP are the major effect of the pandemic on the UK market. The pandemic has led to the job cut of many employees across the UK. In 2020 January, the unemployment rate in the UK was around 4%. But the pandemic led to an increase in the rate to 5.2% which now stands at 4.6% (GOV UK, 2021). Not only the unemployment rate but the GDP trends and rate of the country have also been affected by the pandemic. In 2020, the UK has faced a major decrease in its GDP following a constant upsurge over the years (GOV UK, 2021). Trade between the countries or cross border transactions has also become a major area that has been suspended due to the pandemic. The food production sector in the UK has been majorly impacted by the situation. This is because the country has insufficient food production capacity as well as labor challenges due to Brexit. It has led to weakened the food production of the country and impacted the sector. During the second wave of Covid-19, the UK has faced major challenges with its food supply. This has led the country to come to a point where they had been involved in cross border transactions with France. The special cross border policy and the relationship between the countries have been effective in this process.
The food production industry in the UK has been facing major challenges due to the implementation of Brexit which has become worsen with the Covid-19 pandemic. Availability of labor, adequate supply of raw materials is the major issues that the industry has faced due to the pandemic (GOV UK, 2021). This has a major relationship with the unemployment challenges in the industry. However, it can be said that Brexit can be effective for the UK to improve the economic situation following the downfall due to the pandemic. The country has focused on the utilization of own resources to reduce dependency on cross border transaction. Such approaches by the UK are also the resemblance of a long term perspective on globalization.
Conclusion
It is concluded that the Covid-19 pandemic has shaken the economy across the world. Due to the pandemic, associated factors of the economy like employment, GDP have been affected. The intensity of impact made by the pandemic on the UK is quite considerable. Due to the dependency on other countries for food production and labor challenges have created difficulty for the UK.
References
Beck, U., 2018. What is globalization?. 01 ed. London: John Wiley & Sons.
GOV UK, 2021. Gross Domestic Product: chained volume measures: Seasonally adjusted £m. [Online]
Available at: https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/abmi/pn2
[Accessed 16 September 2021].
GOV UK, 2021. Unemployment rate (aged 16 and over, seasonally adjusted). [Online]
Available at: https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/timeseries/mgsx/lms
[Accessed 16 September 2021].
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