Effects of Covid-19 on globalization

Effects of Covid-19 on globalization
Effects of Covid-19 on globalization
Over the past year, there has been the absence of the freedom to travel to any place in the world, supply chains integrated globally, and improving interlinked markets and economies of many nations. Instead, since the third month of 2020, governments have experienced quarantines, travel restrictions, closure of businesses, and high unemployment rates. The pandemic significantly impacted every single country’s economy.  Every advanced economy since September 2020 was in depression or stagnation, while other emerging economies were in stagnation (Yip, 2021). Many individuals would say that dependency and interconnections within states caused by globalization could have made the economy and potential impacts on public health worse for the most affected conditions. Therefore, it is correct to say that globalization has set the pace of globalization back, and it might or might not recover.
According to Yip (2021), main geopolitical occurrences have also increased the globalization of businesses since the golden years. Also, in the past years before Covid-19, globalization was not as strong. Moreover, other political occurrences led to the reversal of globalization (Shrestha et al., 2020). Additionally, a phenomenon like a rise in the cost of oil made oil companies seeks to deglobalize their costly supply chains, which also triggered the reversal of globalization.
The recovery of globalization will be determined by the period the pandemic lasts and the damage of other pandemics in the future. The effects of the Covid-19 pandemic on the strategies of globalization are explained using four mechanisms (Yilmazkuday, 2020). They include buyer attitude, critical stakeholders’ mindset, business globalization economics, and national government behavior. These strategies will also aid in the recovery of globalization in years to come.
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