ABSTRACT
A global pandemic caused by a microscopic enemy,
which outbroke in Wuhan, China, quickly spread throughout the modern world,
bringing world’s largest economies to a halt.
By March 2020, the whole world was impacted by the ripple effects of COVID-19 and was in the midst of
battling this infectious disease. The pervasive economic consequences of
the coronavirus are not a macroeconomic
problem that can be solved or reduced. Instead, the world is seeing a
fundamental change in the nature of the global economy. The immediate crisis is
considered to have affected both supply and demand. Declining supply shall be considered as a short-term issue, that
stimulus plans by various countries, including a massive plan by the US
government, along with historic low interest
rates, may remedy. In this article we examine different scenarios of the supply chain’s future and its separation from
social trends. Moving nations toward self-sufficiency may deeply alter
globalization, which requires the division of
labor between different economies. Unless strong economic policy measures are taken to prevent social
disintegration, this change may be an end to globalization. Hence, many global leaders have implemented stimulus
packages in an effort to relieve the economic stress felt by businesses
and families, as a short-term economic stress relief. This pandemic has
demonstrated the fragile nature of the US and the global trade system, due to
majority of products being manufactured in China. There is an urgent need to
expand manufacturing industries to various
countries rather than concentrate most of them in one location. This
pandemic will result in a shift to self-sufficiency, in the short-term, within
borders. However, in the long-run, it will re-define globalization to include
more countries functioning as micro-hubs for production, which should be
implemented to avoid the “all eggs in one basket” scenario. In addition, this system will enable smaller economies to participate
in the global platform.