(TIỂU LUẬN) group project IBC201 TOPIC THE SCARING EFFECT OF THE COVID 19 PANDEMIC ON THE GLOBAL ECONOMY

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(TIỂU LUẬN) group project IBC201 TOPIC THE SCARING EFFECT OF THE COVID 19 PANDEMIC ON THE GLOBAL ECONOMY

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FPT UNIVERSITY- CAMPUS CAN THO  Group Project IBC201 TOPIC: THE SCARING EFFECT OF THE COVID-19 PANDEMIC ON THE GLOBAL ECONOMY Name of group member Nguyễn Thanh Kim Lan Bào Thanh Trúc Đào Thị Bích Phương Lê Xuân Cát Tiên Đinh Quốc Huy Cantho, 07/2022 TABLE OF CONTENTS I ABSTRACT II INTRODUCTION What is international business? What is international trade? 2.1There are two methods 2.2Benefits and drawback Business theory of culture 3.1Organizational culture Global issues 4.1Safety and Welfare 4.2 Unemployment 4.3Corruption COVID-19 Pandemic III METHOS Objectives Methos IV RESULT & DISCUSSION The effects of the global economy before the pandemic, duri pandemic The effects of the global economy after the COVID-19 pand Barriers to international business Tariffs Quota Non-tariff barriers Ethics in business 4.1Using labor 4.2Environment 4.3Food safety 4.4Ethical obligations of m Strategies and plans to solve the problem V CONCLUSION VI REFERENCES I ABSTRACT The Coronavirus (COVID-19) pandemic has been and is a public health threat, it poses dangers to our lives and it is also a world economic threat All countries, advanced or less advanced economies are severely affected and are facing limitations in their resource capacity with shortages becoming more acute in developing countries The Covid-19 pandemic is also the most serious economic challenge, even more, profound than the Global Financial Crisis of 2008-2009 In 2020, the world economy will shrink by 3.5% For developing countries, which are heavily dependent on services, the impact is especially severe Southeast Asia's growth slowed by 3.9% due to a loss of international tourism revenue, a decline in private sector investment, and a decline in activity in the construction and mining sectors The purpose of this paper is to present global business issues and the impact of the pandemic on the world economy This current crisis is creating spillover effects throughout the supply chain As a result, countries that are heavily dependent on foreign trade are more negatively affected Besides, we can assess the industries seriously affected by the pandemic and come up with appropriate solutions to revive the global economy II INTRODUCTION What is international business? International business is all transactions of a business nature, between enterprises of different nationalities, to meet the needs of international customers and thereby earn profits for businesses and individuals, and economic organizations If the transactions are not for profit, the transaction is not of a business nature International business differs from domestic business in terms of scope, complexity, legal system, the currency used in payment, and payment methods [GROUP IB1604.GA] What is international trade? 2.1 There are two methods to understand international trade When used in a limited sense, international trade refers to the trading and exchanging of physical items between nations to produce advantages that domestic trade and exchange activities not have or cannot match International trade is appreciated and understood in a broader sense, not just as a trade-in tangible item but also as a tradein good, along with the growth of international economic relations, especially in recent decades Intangible commodities, services, and investing for financial gain are also included in this category of activities A very broad definition of international trade embraces all commercial activity on the global market, including international trade and investment activities, from the purchase and sale of physical manufacturing to services such as transportation, tourism, information, insurance, finance, credit, etc 2.2 Benefits and drawbacks of global trade International trade can benefit nations by boosting their economies and those of other nations with which they conduct business, but it can also reward big corporations by boosting their profits There is no market for small companies, such as national trade and sales, which can aid businesses in growing their networks, connecting with new clients, and generating considerable economic growth International trade, however, can also disadvantage small businesses because they cannot reach the same number of consumers and offer the same pricing, including family-owned and local businesses' competitive balance Participating in international trade not only helps nations develop their economy but also enables them to set prices and rules that benefit all parties Collaboration and teamwork are essential for establishing a regulatory framework because they foster positive political ties among trading states International commerce can benefit the economy of all parties involved because it creates new markets for countries to sell their commodities on while also supplying the receiving nations with employment opportunities and consumer goods Global trade, however, can also harm the environment because it necessitates the use of fuel-powered ships and aircraft for the [GROUP IB1604.GA] manufacture and movement of goods and products Global trade ultimately has the potential to benefit society as a whole while harming smaller businesses and allowing the biggest and most dominant firms to dominate the market For instance, the industry of export and import Exporting is the act of shipping commodities made in one country to another for consumption Bringing products made elsewhere into the nation for consumption is the process of importation Local export activities may also be included in export activities Local exports have a similar economic impact to exports even though the commodities haven't yet crossed international borders Business theory of culture Uncertainty avoidance is a cross-cultural characteristic that describes how different cultures or societies respond to and accept uncertainty It focuses primarily on how local communities deal with the uncertainty that is evident in key areas of governance An illustration would be when a business wants to help these clients reduce uncertainty avoidance by developing familiar experiences that concisely and effectively convey critical information, such as prices or quality standards Collectivism is a theory or way of life that puts the interests of the group before those of the individual Individualism, on the other hand, is a value or political viewpoint that emphasizes personal individuality and freedom For example, although two leaders are promoting the same product, their mentalities are very different The individualist leader holds that a company's success rests on its capacity to foster employees' distinctive, original contributions to the workplace Collective leadership places more emphasis on the needs of the business as a whole than on individual needs 3.1 Organizational culture traits Organizational culture is highly complicated Like everyone else, every business has its unique personality, the term "culture" refers to an organization's distinctive character Organizations with innovative cultures encourage their staff to take chances and be creative in their work Companies with innovative cultures expect their workers to carry out their duties in the same manner as instructed, without aiming to better [GROUP IB1604.GA] The degree to which accuracy in work is expected of employees is determined by this aspect of the corporate culture A culture that values attention to detail highly expects its workers to their tasks accurately, in contrast to a culture that values this quality less highly How this value of organizational culture is emphasized by results-focused and non-results-focused businesses A corporation with a high-value culture that emphasizes result characteristics tells its sales team to whatever it takes to win orders Companies that embrace this aspect of their organizational culture also value how decisions they make will impact all of their employees These businesses recognize the value of treating their staff with decency and respect The major problem is if an MNC’s organizational culture in one country’s facility differs sharply from organizational cultures in other country’s facilities This list is not intended to be all-inclusive, but it does help illustrate the nature of organizational culture The major problem is that sometimes an MNC’s organizational culture in one country’s facility differs sharply from organizational cultures in other countries For example, managers who well in England may be ineffective in Germany, even though they work for the same MNC In addition, the cultures of the English and German subsidiaries may differ sharply from those of the home U.S location Effectively dealing with multiculturalism within the various locations of an MNC is a major challenge for international management A good example is the German MNC Hoechst AG, a very large chemical company that employs more people on the other side of the Atlantic than in Germany As its chairman has noted, “We are not merely a German company with foreign interests One could almost say we are a non-national company.” And because of the high labor costs in Germany, the firm has been expanding its operations to lower-cost regions It has also been selling some of its German operations while purchasing businesses in other countries Hoechst has also made its top management less German as a result of this process There is a widely held belief that organizational culture tends to moderate or erase the impact of national culture The logic of such conventional wisdom is that if a U.S MNC set up operations in, say, France, it would not be long before the French employees [GROUP IB1604.GA] began to "think like Americans." Evidence is accumulating that just the opposite may be true Hofstede’s research found that the national cultural values of employees have a significant impact on their organizational performance The cultural values employees bring to the workplace are not easily changed by the organization So, for example, while some French employees would have a higher power distance than Swedes and some a lower power distance, chances are “that if a company hired locals in Paris, they would, on the whole, be less likely to challenge hierarchical power than would the same number of locals hired in Stockholm.” Hofstede provided the early database of a set of proprietary cultural-analysis techniques and programs known as DOCSA In examining and addressing the differences between organizational cultures, Hofstede provided the early database of a set of proprietary cultural-analysis techniques and programs known as DOCSA (Diagnosing Organizational Culture for Strategic Application) Global issues Global concerns are matters of concern that affect the entire world on an economic, social, and political level These issues impede human growth in terms of social and economic development Here is a list of some of the pressing global concerns that must be addressed for society to advance 4.1 Safety and Welfare Some of the most urgent issues of our time are those related to security and wellbeing Millions of people around the world are impacted by issues like terrorism, cybercrime, and natural catastrophes Politicians, corporations, and international organizations are all prioritizing these challenges For instance, the State permits the development of a park or a kindergarten in a neighborhood or industrial park Then, everyone enjoys the same benefits, including residents of residential regions and employees of industrial zones Another example is the fact that when hospitals are built, people don't care who will be treated there, whether they are wealthy or not instead, they just consider what categories of diseases can be treated for each patient hospital type [GROUP IB1604.GA] Everyone who requires medical care at that time will get it, and they'll all get the same treatment However, the choice of particular individuals or groups of individuals in terms of welfare and security policy depends on their particular circumstances, which are referred to as varied "levels of interest" in social welfare economics Workers, for instance, are concerned with finding work, making a livelihood, and maintaining living conditions to ensure the reproduction of the labor force Social welfare economics demonstrates that the government plays a significant role in welfare and social security and is the only entity that can address market flaws and shortcomings Recalling the aforementioned illustration of constructing a kindergarten and park It is improbable that any business has invested money if it is simply for profit However, the government must plan the construction in the interest of the general public (with the state capital) 4.2 Unemployment Many people, especially those between the ages of 15 and 24, won't be able to find a job and establish a sufficient way of life for themselves and their families without the educational knowledge and skills required for employment family This will result in a shortage of necessities like food, clothing, transportation, and livable conditions To help individuals escape poverty, there are organizations all around the world that educate people on the skills required for jobs and interviews Automobile assembly lines that employed workers to create welds on vehicles were created in the 1970s In the 1980s, as robots took the place of employees due to automated procedures, local automakers no longer had the same need for technicians However, there is a significant need for welders in other areas of the country and other industries, such as the oil industry (such as Alaska and the states with oil wells) Welders laid off in the car industry can find work and stop being unemployed if they are aware of the job opportunities (and a suitable fit) Retraining workers with outmoded job skills to work in fields that require people with different skill sets is another strategy for addressing structural unemployment Robots have reduced the need for welders on auto assembly lines, yet automated automobile assembly systems have increased the need for employees to maintain and program them Robotic assembly line maintenance and programming can be taught to former assembly line welders who lost their employment when robots were introduced [GROUP IB1604.GA] Less structural unemployment occurs in the economy for workers who successfully undergo retraining to operate and program automated production lines 4.3 Corruption An annual Corruption Perceptions Index (CPI) has been released by Transparency International (TI) since 1995 Some problems are as global as corruption is a major cause of poverty, undermining political and economic development, democracy, and more Corruption can be detrimental to the safety and health of citizens living in the vicinity and can cause an increase in violence and physical threats An embezzlement is an act of abusing position and power to appropriate property of a State agency or organization into its property and under its management Embezzlement is one of the acts of corruption, so people with positions and powers working in state agencies, organizations, and units appropriate public property and cause harassment to people The director took advantage of his position and power to direct his staff, who are directly accountants and treasurers, to make false documents to settle economic contracts to withdraw nearly 1.9 billion dongs Along with that, the director divided among the treasurer and accountant each 100 million dong, the rest the director spent for his purposes Accordingly, because he took advantage of his position to occupy the company's assets for personal purposes, this director was guilty of embezzlement For example, in a company where corruption occurs, the person who commits the embezzlement act is the head of the department The behavior of the head of this company, if it is about the harmful effects of losing the company's common assets, leads to a decrease in the company's capital and not enough money to buy new equipment for the production line As a result, manufactured products cannot be sold due to high prices, but the cause of high prices is poor labor productivity due to outdated production lines COVID-19 Pandemic Covid 19 is a global epidemic, greatly affecting people, the global economy in general, and the economy of a country in particular The Covid-19 epidemic has complicated developments, disrupting the socio-economic activities of countries around the world The global economy is expected to experience the worst recession in the [GROUP IB1604.GA] history of all nations, including major economies And the Covid-19 epidemic's negative effects would significantly slow growth In December 2019, a patient with pneumonia of unknown cause in Wuhan, Hubei Province, China was found to have been infected with the novel coronavirus that causes severe acute respiratory syndrome coronavirus (SARS-CoV)-2 ) The illness this virus causes is called Coronavirus Disease 2019 (COVID-19) The COVID-19 has then declared a pandemic on 11 March 2020 with more than 118,000 cases in 114 countries and 4,291 deaths Through its hubs, the COVID-19 epidemic is significantly affecting the global value chain During the COVID-19 pandemic, hard-hit countries are also centers of the [GROUP IB1604.GA] US, then consumers will tend to look for cheaper alternatives to consume, which will make US honey not this is the reason why the US chooses this form of dumping to bring benefits to domestic honey producers this is again a threat to the Vietnamese honey market in the US) In international trade between countries, it is inevitable that retaliation or unfair competition in trade will be inevitable If countries can't come up with measures to deal with it but still persist, the situation of war will be severe trade war will take place : Are taxes imposed on imported goods to protect trade and regulate domestic import and export activities in many forms because low or high commodity prices affect the market's purchasing power and the volume of exports and imports Depending on the purpose, the tariff can be high or low For example, if the government wants to encourage exports and imports, the tariff will be low, and if it wants to restrict exports and imports, the tariff will be high Although it benefits some countries in the region, it threatens other neighboring countries Economists have also argued that free trade remains an ideal form of national prosperity Tax is a means of increasing the costs incurred by consumers of imported goods, indirectly affecting the needs and welfare of consumers Still, tariffs are an essential source of budget revenue government In other words, import taxes are paid by domestic consumers and the impact of tariffs makes imported goods more expensive On the other hand, if domestic manufacturers depend on imported raw materials, machinery, equipment, or input products in the production process, the cost of that product will increase, and consumers will be affected Consumers are still the losers Consumers tend to lose out with tariffs, where taxes are collected domestically For example, the US and China have started a trade war since 2018, and in recent times the Covid-19 pandemic originating from China is breaking out everywhere, which is also one of the reasons why the US has hit the market Very high taxes on medical products from China However, this decision of the US, partly caused a shortage of supply for the country because the US was the largest epidemic area in the world at that time That said, the tariffs that the US has imposed on goods imported from China have greatly limited the US's disease prevention and control, and US consumers will have to face goods with high risks and outrageously high prices : This is one of the limitations imposed on a country's ability to import or export goods during a given period Often these barriers will be related to licensing Quotas are [GROUP IB1604.GA] 21 seen as a tool for the government to directly manage the number of goods involved in the trade From there, the government can find problems and timely remedy protection targets For example, when the world is struggling against Covid-19 is also a time when all import and export activities are limited because the supply is high, but the demand is small, the government must set policies to manage the number of goods certain to be able to profit from exports but still meet domestic demand : Non-tariff barriers are policies that hinder, affect, or resist the entry of foreign goods to protect domestic goods through other means than the imposition of direct taxes For example, limiting the market access conditions of imported goods, limiting the volume and value of goods traded internationally, impeding the growth rate of international trade turnover and the growth rate of each country's goods economy, increasing the cost of imported goods and reducing consumer benefits, and reducing the competitive motivation of domestic entrepreneurs These measures can affect the value of goods as well as the time it takes them to reach consumers Ethics in business Globalization and international integration are significant trends that have a profound impact on countries in all fields, contributing to both good opportunities and significant challenges in the production activities business Although businesses all have certain advantages for themselves, such as abundant resources, rich resources, etc These things have made businesses have a strong position in the market to be able to compete with other companies' other opponents Moreover, the outstanding feature that makes domestic and foreign consumers always remember the business and its products is a component of the corporate culture However, to form a corporate culture, it is necessary to have a component of business ethics According to Professor Phillip V.Lewis, lecturer at Abilene Christian University, the United States has raised the concept of business ethics as "Ethical in business is all principles, standards and ethical standards or rules to guide an organization's fair behavior and integrity under certain circumstances.” Indeed, business ethics is one of the concepts associated with business interests It plays a huge role in the development of domestic and foreign businesses and is governed by a system of values and social ethical standards Besides, there are also many ethical issues in international business stemming from the legal, political, economic, and cultural [GROUP IB1604.GA] 22 development of each country Currently, issues in international business include employment, environment, food safety, and ethical obligations of multinational corporations 4.1 Using labor Employees have the right to work in a safe and clean environment, have the right to be protected from all dangers, and refuse dangerous work that is not suitable for their abilities If the enterprise's leaders not have measures and policies in place to protect employees and not control the safety of facilities, it will not meet acceptable standards and may result in dangerous situations Unnecessary situations for employees such as accidents, injuries, etc In addition, many leaders cut costs and wages of employees for very unreasonable reasons that make employees work in a bad environment The school lacks conditions, is precarious, exploits the labor of employees, etc The above actions are unethical in business 4.2 Environment The environment is the common property of all mankind, if we not protect the environment, people will destroy their own lives The environment is considered one of the very important issues because, at present, there are many enterprises, factories, industrial parks, etc In the process of production, discharging wastes directly into the environment without going through any treatment steps causes serious pollution, and affects people's health Although they know it's not right, because they put their interests and business interests first instead of the interests of the community, they defied doing these unethical acts Therefore, every business should consider carefully and should put the interests of the community first, and operate ethically to protect the living environment of people 4.3 Food safety It can be said that food safety is the most painful and concerning issue at the moment Food products are produced through strict processes and regulations of businesses, so businesses play a key role in this regard In addition to the authorities, inspecting food hygiene, the issue of responsibility and ethics of business and production [GROUP IB1604.GA] 23 people is an extremely important factor in the quality of production The food will never fall into contamination, be unsafe, or affect the health of consumers if the producers work ethically, and always control and manage every production process In addition, to this, state agencies, the people, and the media need to promote propaganda so that businesses can recognize and be aware of the responsibilities that businesses need to to protect the environment and community defense 4.4 Ethical obligations of multinational corporations Multinational companies, no matter where they work, in any country, must be responsible and have to comply with ethics in business activities Sometimes there will be restrictions on policies, laws, and competition, but the power of multinational companies in foreign countries is great Many multinational companies have used that power only to achieve their ends For example, when multinational companies invest in Vietnam, they will enjoy a lot of incentives such as corporate income tax, exemption from import tax on machinery and equipment, and so on continuing to kill thousands of businesses that produce similar products However, they not stop there, they want to enhance their benefits by cutting costs for the treatment of smoke and waste that cause serious water and air pollution Business ethics are complex issues within a country, but they are even more complicated in a global context Certain conditions must be met to create an ethical business environment, including social sustainability, institutional legitimacy, and government accountability, legitimacy of private property and property, belief in the future of society and oneself, belief in one's ability to provide for one's family, and knowledge of how the system works and how to join that system It can be said that the business ethics of an entrepreneur is one of the basic factors that create prestige and create a premise for businesses to achieve success, survive and develop Therefore, when you not understand the role of business ethics and not have a sense of building business ethics in the business, it will be very difficult to succeed [GROUP IB1604.GA] 24 Strategies and plans to solve the problem The pandemic has had more profound impacts on SMEs because they have very limited resources and vulnerable supply chains and business-to-business and business-tocustomer relationships row In this context, it is expected that after the pandemic, many of these businesses will disappear because the "new normal" will require changes in business management and infrastructure To mitigate this risk, countries, and businesses need to identify the critical aspect of business recovery during the ongoing pandemic and post-COVID-19 period To adapt to the new normal, businesses need to focus on product innovation, process innovation, and management system innovation Innovate to develop new products that meet new market needs Depending on the industry you're in, your clients may have some specific pain related to covid 19 Strategically dig into customer mindsets the pandemic is affecting customers how what is keeping them up at night and how can you help them You can then tailor your sales and marketing design to how you address your customers' challenges and concerns When talking about customer psychology, since the pandemic took place, people have formed a mentality of fear of crowds, dislike of jostling, in favor of practical and quick actions They don't want to have to jostle at the mall to buy goods, they don't want to wait in long lines to eat their favorite food Therefore, online trading and home delivery have become more developed than ever Online sales websites handle quickly and help consumers access safe products during the pandemic Restaurants and eateries have changed their management, gradually shifting to take-out and home delivery Besides restoring production in businesses, tourism is also a factor that needs to be restored For human resources in the tourism industry to gradually recover and prosper again in the context of many difficulties, it is necessary to have many comprehensive and synchronous solutions for enterprises Firstly, enterprises should streamline their apparatus, rearrange job positions, and try to retain key personnel with preferential regimes so as not to spend a lot of time searching Enterprises need to train and retrain tourism human resources for the recovery period through practical training programs enterprises and review and develop in-depth human resource training programs, creating output is high-quality human resources Focusing on ensuring safety when organizing tours, with activities such as the medical declaration, receiving guests, building products, [GROUP IB1604.GA] 25 and creating trust for customers so that they can use our services with peace of mind Secondly, businesses need to actively plan to recruit new employees and contact old employees who are on leave, design many preferential regimes and create favorable conditions to attract employees to return safely to work Third, it is necessary to receive financial support from the Government and at the same time have policies to support unemployed workers, so that they not quit their jobs The Government considers supporting businesses with a 0% interest loan package to pay salaries to employees to maintain the human resources of enterprises In addition, it is necessary to have policies to support, train and create jobs so that there is no disruption of labor in the tourism industry V CONCLUSION Through the above-proposed policies, barriers, and programs to highlight issues affecting the global economy after the covid-19 pandemic, find support measures for businesses with difficult circumstances in the case of prolonging the period of social distancing and at the same time maintain the level of usage within the country It is necessary to focus on domestically produced necessities to contribute to the recovery of the global economy after the Covid-19 pandemic, which has begun to accelerate The number of new cases remains high, including in both developed and developing countries, and the emergence of new variants of the virus cannot be ruled out Other risks also threaten recovery In short, the global economy is gradually adapting to the covid-19 pandemic, thereby being able to restructure the supply chain, "repatriate" essential sectors, and build resilience against the "winds" of the pandemic potential upside, building strategies in line with global trends to leverage their strengths are seen as new drivers for the post-COVID-19, economic recovery as priorities leading in economic policies of countries in the coming time VI REFERENCES Girdhar, A., Kapur, H., Kumar, V., Kaur, M., Singh, D., & Damasevicius, R (2021) Effect of COVID- 19 outbreak on urban health and environment In Air Quality, Atmosphere and Health (Vol 14, Issue 3) https://doi.org/10.1007/s11869-020-00944-1 [GROUP IB1604.GA] 26 Chiwona 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DISCUSSION The effects of the global economy before the pandemic, duri pandemic The effects of the global economy after the COVID- 19 pand Barriers to international business... RESULT & DISCUSSION The effects of the global economy before the pandemic, during the COVID- 19 pandemic The world economy is still going up and developing strongly Although the world economy had declined... OBJECTIVES The goal of studying the economic impact of COVID- 19 is to understand the details of the global economic problems and impacts of the pandemic From there, provide detailed information on appropriate

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