During this hard time, almost every business economy and trading sector have been drastically impacted by COVID19. More than a million confirmed cases are reported and the death toll passed 600,00 globally in the first week of April 2020. The virus primarily reported from China, which negatively impacted all the major economies and forecasted the upcoming grand depression around the globe. The various news of the economic arrest, the unemployment along with the deficiency of goods and medical equipment have raised another question – Is globalization the foremost reason for the spread of the virus. Many nationalists and economists are starting to point out the influence of globalization on the spread of the virus. Globalization the establishment of a large global market that grew in the 1970s and shifted into a lifestyle in the 1990s created a market for the US and European products in Asia and Africa and the Asian products became popular in the western markets; globalization is considered as one of the key factors for the formation of a global supply chain. The progression of digital technologies and modern transportation and logistics including aviation facilities made modern globalization so instinctive. But the COVID19 changed the picture; many major countries are in lockdown, even within European Union major borders are closed and the global supply chain is broken, there is an enormous shortage of essential commodities and medical facilities.
As globalization approaches the new decade we can observe a new group of its patrons and enemies. The left-economists were in the opposition and the nationalists were the advocates of globalization in the 1970s, but when it’s 2020 the nationalists are opposing the globalization. The surge of nationalist governments in the western world is into supporting anti-globalization instincts. It’s clear that the United States and Western Europe had made an unsated growth than eastern nations, especially China. They grew as the second major global economy and converted as a global production powerhouse and a significant connection to the global supply chain. The economic growth rate of China shows how China took advantage of globalization for its growth. Many major economies lost their competition on the production sector to China, even the United States enhanced dependability on the Chinese economy. Chinese products with competitive prices conquered the globe and replaced U.S products. The growth of technology and government policies helped them to produce more consumer favored products by Chinese owned companies. Chinese brands overcame U.S brands in many world markets including India, Pakistan, and Africa.
The efficiency in production and affordable production cost in China was a threat for its competitors and it sealed several domestic companies in major economies, many of them became an importer of Chinese products or China allied company. The change in China’s economy and the U.S – China trade wars made an impact on all the economies. As a result of secluded globalization, when China was hit by the virus the global economy slip into crisis, which affected products and services all over the globe. Nations like Australia’s outcome was critical as they were totally transferring production to China. The nationalists are using this eerie situation against China, which is moreover steered into globalization. Some opinions about China’s fake figures and suppression of information about viruses are being used against their government’s transparency.
2020, is being considered as a frontier – how the world will go ahead. While the pandemic affects influential economies and foreseeing a depression or recession. It’s clear, some alterations are required in world economies, almost 90 nations already requested aid from the International Monetary Fund. As per the reports of the Economist Intelligence Unit, the pandemic caused a huge decline in various economies and many countries like Italy and Spain are expecting a negative growth rate. India and China, countries that have a big domestic market will survive with a large loss in their projected rate. This makes a point about self-sustainable economies, the economy with balanced resources and supply chain within a country further need to develop policies to essential production. As Kofi Annan, former UN secretary-general quoted: “Globalisation is a fact now”, we can’t avoid the benefits of globalization, when technology makes people more reachable it’s not a way by demolishing globalization but this year, without doubt, indicate the need for self-sustainable development for world nations.