5 Impacts of COVID-19 on the Global Business Market
By Elif Çalışkan
There is widespread agreement among economists that COVID-19 will have severe different impacts on the global business market. However, despite the danger that the global economy is in, there is a hope to avoid the worst-case scenarios. Because economy experts show us different impacts of COVID-19 and guides to eliminate the worst scenarios (Duffin, 2020). We will explain the 5 impacts of COVID-19 on the global business market.
The virus has caused disruptions. So, fluctuations have started in the emerging markets. After revealing little movement early in the year, the latest indexes from purchasing manager surveys (PMIs) are pointing to sharp slowdowns in manufacturing output in lots of countries, pointing to drops in external demands and growing expectations of declining domestic demands. However, China has a modest improvement in its PMI after a clear decline early in the year, despite weak external demands, it is one of the positive marks (Bluedorn et al., 2020).
The healthcare economy has been relatively immune to recessions. Normally, people who would otherwise use some healthcare are choosing to stay at home despite some of the medical offices are generally open to reduce the risk of disease spread and treat it. Because people have started delaying their healthcare if there is no emergency. Imaging procedures, surgeries, demanding prescriptions, or optional healthcare products are limited now. However, one of the important lines for medical care is that some people demand delayed care. For example, delayed primary care visits may be rescheduled for the summer. So, the demand for medical care has been constant since people get sick, whether times are good or bad (Admin, 2020).
One of the responses to how people approach this period of isolation is the changes to their shopping behaviors. Also, they are still avoiding public places. So, they’ve changed from bulk-buying to online shopping. Remote work also started to be very common. Because of these, big brands have created new policies, by being flexible to adapt and meet the changing demands. Finally, all those radical changes become the new normal in the time of COVID-19. They bought medical supplies like hand sanitizer and masks and household essentials like toilet paper and bread. Humans behave to crises in different ways. If they face an uncertain, risky situation over which they have no control, they tend to try whatever they can to feel like they have some control (Meyer, 2020).
The economic pain has been strong. Because people have stayed at home. And the severity was felt in lots of sectors of the economy. For example, travel bans have affected the aviation industry; sporting event cancellations has affected the sports industry. Also, closed entertainment industries, hospitality industries have been affected negatively as well. So, the prohibition of mass gatherings had to be ended for lots of business sectors. Because the economy has started to get worse in many countries (Ozili & Arun, 2020).
Cheaper Paid Ads
Paid ads have become cheaper. Normally, big ad networks making money through an auction system. The big billion-dollar corporations have to spend more money on their ads. But they need small businesses to drive up the cost per click (CPC) for their ads. However, the virus has caused spend more time online. Companies like Netflix have had to reduce their streaming quality in these days. So, it created serious traffic on the web. As a result of this, there are fewer advertisers and the price of ads has become cheaper than ever (Admin, 2020).
Admin. (2020). How to Adapt Your Marketing During the Coronavirus (COVID-19).
Bluedorn, J., Gopinath, G., and Sandri, D. (2020). An Early View of the Economic Impact of the Pandemic in 5 Charts
COVID-19 and its Impact on the Healthcare Economy. (2020, April 21).
Duffin, E. (2020, June 26). Impact of the coronavirus pandemic on the global economy – Statistics & Facts
Meyer, S. (2020). Understanding the COVID-19 Effect on Online Shopping Behavior
Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: Impact on the Global Economy Available at SSRN 3562570.