The presentation summarizes the impact of the COVID-19 pandemic on businesses globally. It led to an unprecedented shock worldwide, stopping global progress. There were massive revenue losses, business closures, layoffs and liquidity issues. The negative impact on sales was large and persistent across firms. Most businesses adjusted employment through reducing hours and wages rather than layoffs. There was significant heterogeneity in the effects across countries, with smaller firms facing more financial constraints.

1. Presentation on
“The impact of COVID-19 pandemic in Business globally:
A general View”

2. Md. Arman (21206018)
Antu Sarkar (21206015)
Nikita Sarker (21206016)
Tahia Tasnim (21206046)
Masters of Business Administration
Presented by

3. • It resulted an unparalleled shock to business around the world; stopped global progress.
• Revenue loss, business closures, mass layoffs, and liquidity.
• As the pandemic unfolds over time, more direct evidences are emerging about its impact on jobs
and business activities at different stages of the pandemic.
• The negative impact on sales has been large and persistent, with significant heterogeneity across
firms.
• The adjustment on employment has been mostly on the intensive margin.
• Reduce hours of work, and wages, compared to lay-offs.
• A large magnitude of diverseness in liquidity constraints across countries; smaller firms are
severely affected by financial constraints.
• Uncertainty is very high especially for businesses that were hit harder
Introduction

4. The largest global recession in history
Firms to close or reduce operations
Large drop in sales
Significant adjustments in employment
Sudden shutdown of many factories and production farms
Lot of disruption in supply chain
Unemployment raises heavily
Global economy faced supply shortage
Global stock markets (New York,Tokyo, London, Hong Kong or Shanghai Stock Exchange) fell
Temporary food shortages
Price hiked
Tourism fell down
Impact of the crisis

5. When there is a slowdown in the growth of the Chinese economy, this will have an
impact on exporters to China. Since China largely imports from Japan, Korea and
other Asian countries, due to these disruptions, these economies also had faced a
considerable slowdown in their production until the market stability returns
(Bachman 2020).
Impact on production

6. Tourism and small businesses in general are more likely to be
closed. Six weeks after the peak of the COVID-19 outbreak, the
predicted probability of being open was still under or around 75% for
tourism related businesses, such as accommodation (58%) and food
and beverage services 73% (PRWP).
Impact on Operations

7. South Africa was the country with the largest expected drop in sales, followed by Bangladesh,
Nepal, Honduras, India, and Jordan. Senegal, Sri Lanka, and Côte d’Ivoire displayed a huge
difference between pre and post COVID sale records.
Tourism related activities were acutely affected. These activities usually require more face-to-face
interactions and are more likely to be closed because tourists did not want to be contaminated.
There is significant variation in the percentage change in sales that is not widely displayed by the
interaction of country, size, and sector effects. Indeed, only about 19% of the variation in sales
relative to the same period in the previous year is explained by country, sector, size group.
(World Bank).
Impact on sales

8. 57% of businesses around the world adjusted their employment levels (PRWP, 9434)
This adjustments are:
Granted leave
Minimising working hours
Cutting off the wages
Reduction of employment
Larger firms had an attitude for lay off and grant leave more than double than that of the small
ones and the medium firms are also close to the large firms in the point of reducing workers
Women workers are bearing the most severe brunt of the crisis, they were at greater risk of losing
job or unpaid work (ILO)
Impact on employment

9. UNCTAD: GDP to fall by 4.3 percent in 2020, recovery 4.1 percent in 2021.
Developed economies are affected more than developing countries.
Developing countries experienced negative growth in 2020, and developed economies
experienced a much deeper fall in output.
e.g. automotive and chemicals industries.
For textiles and office machinery in particular, and to a lesser extent precision instrumentation and
communications equipment, China enjoyed growth.
UNCTAD
Impact on GDP

10. Global port calls had fallen around 80 percent in 2019 than that of in 2018.
Ferries and other vessels that carry passengers suffered significant declines in port calls.
Reported by UNCTAD
Impact on sea trade

11. The pandemic delayed the implementation of ongoing investment projects and the stopping of
new projects all around the world.
In 2020, the FDI decreased by 40 percent globally (UNCTAD).
Many mergers and acquisitions were either temporarily suspended or cancelled.
The number of announced cross-border project finance deals declined by 25 percent in the first
three quarters of 2020 (UNCTAD).
The number of announced projects in transportation infrastructure and fossil fuel energy fell the
most (UNCTAD).
Impact on Foreign Direct Investment

12. Most of the manufacturing firms are highly dependent on the imported intermediary inputs from
China.
Many large companies rely on sales in China to achieve their financial targets.
e.g. 2% reduction of Chinese exports in intermediary inputs can cause USD 16 million trade
loss to Bangladesh; for India, the loss would amount to USD 348 million (UNCTAD).
Impact on Supply chain

13. RMG industry had received work order cancellations of nearly $3 billion in the first quarter of
pandemic. Around 2 million workers in the industries had been affected by this.
Around 4 million people are directly engaged with the RMG sector
e.g. backward linkage industries, accessories and packaging factories, and the transportation
sector.
To mitigate the losses in the RMG sector, the government declared a TK-50 billion incentive
packages.
(Alam, et al. 2020).
Impact on Garments Sector

14. Medical products related to the virus such as Personal Protective Equipment, ventilators,
thermometers, sanitisers and the like, witnessed very high growth in the second quarter of 2020.
e.g. in May 2020, such products experienced an increase of 186 percent higher than the
same period in 2019.
Non-medical products related to COVID-19
e.g. home office equipment: Wi-Fi routers, laptops, portable storage also enjoyed strong
growth in the second quarter of the 2020
(UNCATD 2020).
Impact on medical products

15. A number of sectors sustained major negative impacts of this outbreak. These sectors are:
tourism sector;
as people avoided travel to reduce the chances of contamination
retail sector;
where there was disruption due to the decline in consumption demand
e-commerce may boost;
telecom and technology sector witnessed interruptions in its supply chain.
After the lockdown across countries was lifted, the business starts to witness the growth in every
sectors.
Conclusion

16. Dai et al. (2020b) for evidence in China and Bartik et al. (2020); Humphries et al. (2020a); Adams-Prassl et
al. (2020); Fairlie (2020a, b).
UNCTAD. (2020b). Trade and Development Report 2020: From Global Pandemic to Prosperity for All –
Avoiding Another Lost Decade. United Nations publication.
ILO. (2020a). ILO Monitor: COVID-19 and the world of work. Fifth edition – Updated estimates and analysis.
ILO. (2020b). Unemployment rate.
UNCTAD (Ed.). (2020b). World Investment Report 2020: International Production Beyond the Pandemic.
United Nations.
Eurostat. (2020). International Trade.
UNCTAD. (2020c). Global Investment Trends Monitor, No. 36, October 2020.
References

17. United Nations Industrial Development Organisation. (2020). World Manufacturing Production Q2 2020.
UNIDO.
University of Oxford, Blavatnik School of Government. (2020). Coronavirus government response tracker.
World Tourism Organisation (UNWTO). (2020a). World Tourism Barometer, Vol. 18, Issue No. 5, August/
September 2020. UNWTO.
United States Census Bureau. (2020). U[nited] S[tates of] A[merica] Trade Online
World Bank. (2020a). Leveraging Economic Migration for Development: A Briefing for the World Bank Board.
Bachman, Daniel. 2020. The economic impact of COVID-19 (novel coronavirus). March 3. Accessed March 7,
2020. https://www2.deloitte.com/us/en/insights/economy/covid-19/economicimpact-covid-19.html.
2020. Global trade impact of the coronavirus (COVID-19) epidemic. UNCTAD.
References

18. Alam, Shahbub , Md. Jafor Ali, Bashar Abul, and Abul Bashar Bhuiyan. 2020. “THE IMPACT OF COVID -19
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COVID-19 on Businesses.
UNCTAD. (2020). REPORT ON THE IMPACT OF THE COVID-19 PANDEMIC ON TRADE AND DEVELOPMENT,
TRANSITIONING TO A NEW NORMAL (2020). United Nations.
Alam, Shahbub , Md. Jafor Ali, Bashar Abul, and Abul Bashar Bhuiyan. 2020. "THE IMPACT OF COVID-19
PANDEMIC ON THE ECONOMIC GROWTH IN BANGLADESH: A CONCEPTUAL REVIEW." ResearchGate.
doi:10.46281/aesr.v6i2.844.
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Kazi Aiman Udoy. 2021. “Impact of COVID-19 Pandemic on Global Economy and the Direct and Indirect Impact on
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