THE GLOBAL TRADE
Incorporation into the global economy through global trade has been acknowledged as a potent tool for promoting economic growth and alleviating poverty in developing countries. This is because trade has been the primary source of growth for various countries for a very long time. Today, the world economy has become more integrated, raising living standards worldwide.
Approaches that expose an economy to international commerce and investment are required for long term success. In the past few years, no nation has attained significant economic success in terms of substantial growth in living conditions for its citizens without being open to the world economy.
Moreover, many developing countries have opened their economies to the world market to establish strategic benefits in creating certifiable goods. Thus, creating new positions for unskilled employees helps transform them into better wage earners and contributors to the nation.
However, collaboration and growth have been inconsistent due to the pandemic in recent years. Especially if we talk about China. As a result of the devastating pandemic, many nations are blaming China for hiding the issue of this dangerous disease and for not giving accurate information on time.
Thus, shifting their allegiance and trade preferences from China, for instance, the USA, Australia, etc. But, on the other hand, many other countries sought this opportunity and have successfully built close relations with other countries by helping each other in the pandemic.
ISSUES FACED BY DIFFERENT COUNTRIES DURING THE PANDEMIC: IN TERMS OF GLOBAL TRADE
1. PROBLEM FACED AT GLOBAL PLATFORM
International trade growth has been at an all-time low in recent years.
Market disruption was created by lockdown and other preventive measures introduced by world economies. These modifications damaged sectors that characterize a substantial source of foreign income among many developing countries, like tourism and the market.
The pandemic has boosted the need for medical products and personal protective goods like – protective masks and protective gloves, ventilators, oximeters, thermometers, etc. Various nations have used special precautions to alter trade patterns to secure enough supplies of critical goods for local markets, such as increasing imports or prohibiting exports of this kind of goods. Import restrictions to medical goods and essential items have been reduced or eliminated in countries that rely on imports.
On the other hand, export restrictions take supplies aside from global markets, pushing international prices higher. Numerous countries are harmed; as a result, particularly those lacking domestic production capability for crucial goods. Limiting exports could temporarily cut expenses and improve accessibility on the domestic market. Unfortunately, it erodes their own companies’ global market position and customer loyalty in the long run.
2. PROBLEM FACED BY DIFFERENT CONSUMERS
The COVID-19 problem has wreaked havoc on markets outside the macroeconomic level. All nations experienced the first upheaval in diverse ways, whether developed or developing. The pandemic has also wreaked havoc on consumers’ livelihoods.
Essential items have been in low supply for consumers all across the globe because of which consumers have to face so many problems. Even due to the suspension of flights, consumers worldwide have had to negotiate with airline corporations for recompense. Many people are stuck in different countries, and they do not even have money to stay longer. So many students even feel tethered in other countries, especially China.
A rapid spread of electronic commerce is one noticeable shift in consumer attitudes and practices promoted by the epidemic. Implementing security measures has resulted in a massive growth in online exchanges.
People all over the globe have begun to purchase online using internet technologies. The expanding successes of the giant technological corporations visually reflect the growing relevance of online and electronic services in the pandemic.
SOLUTIONS TO VARIOUS PROBLEMS
INCREASE TRADE COOPERATION TO RESOLVE GLOBAL HEALTH ISSUES
To tackle global health concerns, improve economic cooperation. The global health crisis has uncovered many challenges that require governments to step up their cooperation efforts.
Coordination with traders’ partners across bilateral or regional structures can be more effective for attaining a more enormous significant impact of a policy action than unilateral implementation in the case of trade policies aimed at economic restoration. This type of collaboration could create the path for multilateral cooperation to improve.
Market monopoly in the digital economy should be avoided.
As more people used digital platforms for purchasing or other reasons, flaws such as insufficient ethical and organizational structures became increasingly apparent. Due to these factors, consumers are losing faith in online markets, particularly for cross-border purchases.
Flexibility and effectiveness of existing internet-based procedures, the insufficient reach of national authorities against enterprises based in other nations, and insecurity over transaction security and data privacy are just a few of the shortcomings. In addition, since many consumers adopted digital platforms for shopping and other purposes, faults such as a lack of ethical and organizational standards became increasingly prevalent.
Meanwhile, it must be remembered that e-commerce is also not available to all global consumers. The digital divide between and among nations continues to be a serious issue that must be addressed.
Governments and consumer protection agencies should improve e-commerce and digital consumer literacy to guarantee that all individuals will adopt the new usual. As a result, governments must work with firms and customer groups to establish sound business practices outlined in the United Nations consumer protection recommendations.
In the fast-developing digital industry, customers must be secured.
The pandemic has made customers more susceptible to unfair and misleading behaviours than ever before. To improve consumer protection and empowerment, consumer protection organizations must lobby their government agencies and industry regulators.
In addition, regulators and customer protection organizations must closely monitor corporate operations to protect customers’ health and safety adequately. Consumer’s entitlement to non-hazardous items was underscored by the COVID-19 epidemic.
Governments should use promising regulatory approaches that incorporate all stakeholders to protect customers’ health and safety, thereby not incurring additional trade costs.
To make sure that the goods are safe for either humans or animals, governments should implement or promote the adoption of necessary actions, such as legal systems, safety rules, national or international standards, voluntary standards, and the keeping of safety records.
Policymakers should implement programs that are open and effective in protecting consumers. This could necessitate the adoption or amendment of laws and rules and a revived focus on the implementation of fraudulent and misleading business practices online, as well as accurate knowledge and consciousness initiatives.
However, one crucial factor in boosting customer acceptance of e-commerce is the security of digital commerce. Therefore, governments must guarantee that mutual solution mechanisms are quick, transparent, fair, affordable, and freely available to consumers and enterprises.
The pandemic was primarily spread through international trade, resulting in a worldwide economic crisis that has resonated everywhere worldwide. Yet, in an attempt to address some more of the instabilities that caused globalization to compound the pandemic’s effects on the lowest and most highly susceptible, measures for equitable and sustainable trade must be part of the recovery.
Some innovations that have defined this new standard, such as increased digitization, are inclined to maintain and can be built upon to map new paths ahead. A more secure, equitable, and stable future can only be produced through collaboration. There is no better opportunity now to display fresh global cooperation for the international community to stay dedicated to its joint development goals of letting nothing behind.
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About the Author:
Komal is a very passionate girl who loves to explore new things. Currently, she is doing Masters in Political Science from Delhi University. In addition, she has a keen interest in international affairs and effectively pursues the same. As a youth of the contemporary world, she aspires to make the Indian population more conscious and knowledgeable by working with The International Prism.