How the corona pandemic affects globalisation
The corona pandemic has been affecting people’s lives all
around the world, in almost every way possible. The
globalisation is influenced largely by this crisis, as well. But
how? Is it a positive or negative influence? Why?
On one hand, digital marketing and online shopping have been
growing since the beginning of the pandemic – people can not
or would rather not go outside and have contact with
potentially infected people. Due to this, big technology
businesses, especially sites like amazon, are growing very fast.
Therefore, the coronavirus has positive effects on digital
businesses.
Furthermore, since people can not meet each other anymore,
many of them now rely on apps like Skype or Zoom.
Communication services (social media platforms etc.) are
therefore also an industry that is profiting from the pandemic.
On the other hand, however, many economists are saying that
the globalisation is starting to slow down, and this so-called
“slowbalisation” began even before the pandemic. More and
more western countries are looking to not produce globally,
but locally. The pandemic has actually shown how long supply
chains, of which many start in (developing) Asian countries like
China, can cost time and money and are very vulnerable for
shortages. For example, China stopped producing buttons,
which led to no production in Bangladesh and cancelled cotton
orders in India – in the end, this resulted in great losses in these
developing countries and 73.5% less clothing sales in the US.
In addition, some big businesses have shown how practical
short supply chains are. For instance, Zara is a very popular fast
fashion brand that keeps its production places close – e.g. in
Spain and Morocco. Because of that, Zara can adjust to new
fashion trends quickly and only need weeks to make an order at
its factories and receive the clothes. This means: less time,
more money.
All in all, the pandemic has had a few positive effects on
globalisation, especially concerning digital marketing and online
shopping. However, it is boosting the “slowbalisation” too and
creating shortages due to large, vulnerable supply chains.