Categories: Business

covid 19 may accelerate shift in global trade relation says moodys

Photo: GOOGLE

covid 19 may accelerate shift in global trade relation says moodys

new Delhi. The Moody's Investors Service believes that the corona virus epidemic will accelerate the pace of business relations and fundamental changes in the global supply chain. Moody's said on Tuesday that restrictions on trade, investment and transfer of technology due to the epidemic would increase protectionism in economies. Moody's said, "The epidemic will lead to some fundamental changes in trade relations and supply chains globally." This will further harden the stance against globalization. "The Moody's report states that changes in the global supply chain will take many years of process. The report says that some Asian markets, except China, will benefit from changes in the supply chain. Especially given that companies will diversify their supply sources.

"This diversification will benefit some Asian countries except China, provided these countries have a strong economic foundation, have reliable infrastructure, have sufficient labor capital and reduce the risk of geopolitical and supply security," the report said. According to the report, the move of production capacity back to the US and European Union in the event of localization of production will have a negative impact on Asian countries. Moody's said that businesses in Asia, Europe and America would be focused on their region and would have their own suppliers for strategic areas. The report states that preferential access to the European Union and US markets under the Generalized System of Priority (GSP) will benefit developing countries in Asia, such as Indonesia, Cambodia and India. Moody's believes that the main goal of governments and companies in the post-Kovid-19 world will be to strengthen supply chains and ensure supply security.

This post was published on August 11, 2020 10:07 pm

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