Fernandes’ article “Economic effects of coronavirus outbreak (COVID-19) on the world economy” illustrates distinct factors that influence the demand and supply of products. This piece focuses on discussing the financial impact of the COVID-19 pandemic on various industrial companies. Although the author argues that the disease influences both the supply and demand for goods and services, he emphasizes that China’s negative opinion contributed to the decreased need for Chinese products (Fernandes 13). Also, the increased cost of manufacturing discourages potential buyers from purchasing the products because of their elevated prices. The author added that the lockdown and restricted international travels hindered the supply of essential raw materials needed for various industrial firms (Fernandes 2). Thus, this article is vital for addressing the controversies surrounding market equilibrium.
Even though Fernandes claims that the sudden virus outbreak affected the demand and supply for services and merchandises simultaneously, the regulated global trade had the most significant influence on the market. The global population’s negative perception of Chinese products swayed its purchasing behaviors (18). However, the entrusted authorities’ efforts to change the people’s perception are expected to boost the demand for goods. Travel restrictions hinder the import and export of raw materials. Moreover, the limited materials available are costly, which forces the producers to hype the products’ prices to ensure that they make profits from their sales. Consequently, the elevated valuation discourages potential buyers from considering the stocks. Also, the lack of adequate resources forces the industrialists to reduce the quantity of goods produced, making it difficult to match the properties’ demand from the potential consumers located in the various parts of the world.
Work Cited
Fernandes, Nuno. “Economic effects of coronavirus outbreak (COVID-19) on the world economy.” (2020), Web.