Free Essay Example on COVID-19 Impact on International Business: Scenarios Unveiled

Introduction

In our present world today, International Trade has become the order of the day. Now and then, different countries carry out business activities, mostly with other Nations. In the news, you will keep hearing of International Trade Theories, Foreign Direct Investments, and Formulation of National Trade Policies, among other business terminologies. In international businesses, countries encounter challenges, take risks, and sometimes suffer losses, among other activities that we will discuss today. We will take a deeper look at International Businesses using three scenarios in our present world today. These are; the soaring of RV sales during this period of the Covid-19 pandemic (Nicholas, 2020), the free cash for all boosts rising in South Korea (Jeong-Ho & Sam, 2020), and the fuelling of the skittish US stock market by Trump's diagnosis (Reuters, 2020). We are going to deeply discuss these three scenarios that explore different situations in international businesses.

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Scenarios in International Businesses

Due to the current pandemic of Covid-19, international businesses have been affected. International trade has been demoralized by this pandemic in different ways, and it will need great recovery to be restored to its normal position. One major way through which the COVID-19 pandemic has affected international businesses is through soaring of RV sales. In America, those who took vacations this year did it on the road. They had to stay in their recreational vehicles during their vacation. It may seem advantageous due to the rising sales of RV but imagine the hotels that offer recreational services. The losses encountered and are still encountering. These sales dropped to zero as there were no recreational services sty all during the first days of the COVID-19 pandemic. This was a great turndown in international business as it lowered the country's national income level affecting its involvement in international business.

Despite the closing of many recreational hotels due to the Coronavirus pandemic, some of them are slowly reopening (Beorchia & Crook, 2020). But even after the full reopening of these hotels, it will take time for them to recover. The effect of the coronavirus pandemic will greatly be felt internationally for it has brought long-term effects, which will take time to recover from. Economic crises like this one usually affect several countries. The countries that depended on the US for trading activities, for example, will greatly also feel the effect of this pandemic. In international businesses, the countries involved should ensure that they are not dependent on one specific country. This ensures that if one country faces an economic crisis, the other nations will not undergo major effects. In the US, the trading group tried to up their game by having a 2021 outlook, which requires a 2.0% rise in the units sold. That would make the best year of the industry. We can, therefore, conclude that the country has managed to set its recovery strategy.

Another scenario that has occurred in international businesses is the free cash for all boosts that are rising in South Korea. The government expenditure record brought about by COVID-19 in South Korea has helped send a maverick governor to the top of the polls to become the next president. It has also given him a desire to make the nation the first one in Asia to bring up universal basic income (Musweu, 2020). A governor, who has been in service for the largest province in South Korea since 2018, gives a warning that if the country does not practice across-the-board income to cater to inequality, its economic stability will be at risk. This would affect international business as the country would not effectively participate in international trade. It does not concern South Korea only but also other countries that carry out international business together with it.

Finally, we will look at Trump's diagnosis, which has brought uncertainty to the skittish US stock market. Investors have accessed how a possible deterioration in the health of Donald Trump could affect the price of assets in the next few weeks, as he remains hospitalized, he was found to be infected with COVID-19. In the meantime, markets in the country have been kind of sanguine. The lawmakers took the edge of a stock market sell-off on another stimulus (Urbaczewski & LeeY, 2020). The news of Trump being hospitalized at a military medical center came after the end of trade on Friday. Most investors are concerned that a huge decline in Trump's health could roil a US stock market that had shortly recorded its worst monthly performance. This shows that the incident of Trump being diagnosed with the coronavirus could greatly impact the country's economy. This would, in turn, affect international businesses that the US is involved in.

Conclusion

From the above scenarios, we have covered different aspects of international business. It is evident that international businesses are faced with challenges, and there have to be strategies for proper running. In my opinion, countries involved in international business should have a stable economy for proper transactions with other countries. Yes, there are challenges in international businesses, but the activity will be carried out efficiently with the right strategies. It is upon every country to ensure it plays its role in the international businesses that it participates in. Every nation should have a stable economy and the required resources to participate in international trade activities and business. With every country ensuring this, there will be a smooth flow of international business activities worldwide. It will then result in improved standards of living and economic development in different nations. The above facts make it evident that proper business activities can change the world we live in today.

References

Beorchia, A., & Crook, T. R. (2020). Bloomberg supply chain analysis: A data source for investigating the nature, size, and structure of inter-organizational relationships. In Advancing Methodological Thought and Practice. Emerald Publishing Limited. https://www.emerald.com/insight/content/doi/10.1108/S1479-838720200000012017/full/html

Musweu, F. K. (2020). Profitability and Shareholder’s Wealth Maximisation. International Journal of Public Finance, Law & Taxation (Online ISSN: 2581-3420), 4(1). http://www.management.eurekajournals.com/index.php/IJPFLT/article/view/440

Urbaczewski, A., & Lee, Y. J. (2020). Information Technology and the pandemic: a preliminary multinational analysis of the impact of mobile tracking technology on the COVID-19 contagion control. European Journal of Information Systems, 1-10. https://orsociety.tandfonline.com/doi/abs/10.1080/0960085X.2020.1802358