Question

Trade is an important aspect of economic growth in many countries. Given the recent, and continuing pandemic, arguments are increasing in the area of the manufacture of medication. How is this area of the economy a key industry and should there be a form of protectionism (i.e. production in the US)?

Answer 1

a 2 march 2020,. the nations with the COVID-19 is a Supp Supply Shock and it is a demand Shock Both aspects will impact intensational Trade in good and services. A Few barrground poets are worth keep ing in mind when think thinking a head about the trade effects. • Firest, Previous Post-war Pandemic have general affected much less economi cally important nations. As of most important reported cases include China, konea, italy Japan, Us aalgenom adgennary. These sin hand-hit nations accounts for » about 55% of wonid 55% of world supply and demandl CGDP) » about Got of world manufacture manufacturing and inufacturing > Second the vines and accomp mpanying preven talive Policies induce an important agreegate demand slow down in these six nations. ད → 50-1. OK world manufactu exponts. 1

the whole Post Pone nufacturing ering Lectors gets a triple bitrio An important point is that manufaa cturing is special, manufacturing goods are on able purchases . .Ab we show in the great trade collapse of 2009, the wait and see demand Shock impacts durabie. goods more then non- durable goods. In Short ; the manufaa the manufacturing sector de litery to get a triple hit. 1. Direct supply disruption hindle hindering Production since the disease is focused on the wory of manufactur tuning sectors is liked to spried fast in the other industrial giants- the us and germany Development and under levelopment are Paretial and interdependent Structure aking of the economy as a as a whole Structure dominating by virtue of its endogenous Capacity OT oferempment. speeding with / one

on GDP their This is why the biggest impacts occurs when we have peopie reducing social Consumption in an effort not to get the dreases. However, falls in social UP ali Scenar amount > reason that supply consumption do not.. scale riors the by same am For the simple and demand are com pimentany A school Closures and people taking more time increase the size of the supply Shock has less scope to do The t fall in annual longest GDP in all the variants we looked at Off Work was 6.