BACKGROUND OF THE STUDY
The COVID pandemic differs from previous outbreaks in two significant ways: (1) disease transmission has been much faster than in previous outbreaks, resulting in large-scale containment policies that are almost synchronized globally, and (2) abrupt disruption of value chains, resulting in a global economic collapse. The COVID-19 pandemic has a variety of impacts for communities and economies, notably in Africa, in terms of the number of new passage arrivals, the openness to and dependence on commerce and foreign investment, and not least the pacing and rigor of government preventive efforts. COVID-19’s impact on trade, logistics, and tourism has been thoroughly evaluated and studied in Mauritius and other countries by an international economics team. The impact on the economies of various countries was assessed using a variety of methodologies.
In the case of an intensified pandemic, the reductions will be doubled. In the event of a global pandemic, the places most interconnected by commerce and/or where tourism plays an essential role in economic growth will have the biggest GDP losses, resulting in a 3.9 percent decline in global GDP. With an estimated GDP loss of roughly 3%, Sub-Saharan African (SSA) and Middle East and North African (MENA) countries are the least affected by both circumstances.
The most immediate business effect of the new coronavirus pandemic was a quick jump in global demand for the accompanying COVID-19 medical supply, which exceeded current levels of domestic capacity, resulting in increasing import demand and higher costs. For example, in the case of medical masks, export limitations were enforced.
STATEMENT OF PROBLEM
The effects of COVID-19 (Baldwin & Toimura, 2020) on Direct Supply Disruptions (local/regional lockdown & forced production stoppage), higher transportation costs due to enforced rules, and the supply chain contagion effect, which increased direct supply shocks (the manufacturing industry in less affected countries found them harder and more expensive) (delayed purchases & investments). The reporters who are most affected by the pandemic and the economies that rely on trade with these countries through export/import connections (forward/backward links in global value chains, or GVCs). The world economy’s sensitivity to the shock was heightened by greater disruption and various supply chain management ideas (only in time and lean production with limited input stockpiles). Global volatility has increased, which has a detrimental impact on stock markets. Companies’ investment levels are reduced as a result of increased volatility and decreased demand, which can have serious and complex consequences (lower accumulation, lower growth rates). Individual governments and economies have adopted uneventful measures to relieve the crisis once again, with bad implications on public finances and global debt levels approaching 2007-08. This increases the possibility of a W-form scenario (the initially assumed V-shape with a strong recession followed by sharp recovery is already highly unlikely).
OBJECTIVES OF THE STUDY
The following are the study’s key objectives:
The goal of this study was to see how Covid 19 affected foreign trade.
To see if the pandemic has caused any disruptions in the import/export of goods and services.
What impact has Covid 19 had on international trade?
Has the import/export of products and services been hampered by Covid 19?
SIGNIFICANCE OF THE STUDY
This study will be useful to trading countries, governments, and researchers and scholars who are interested in learning more about the study.
SCOPE OF THE STUDY
The goal of this study is to determine the impact of Covid 19 on international trade, and Nigeria will be the sample response.
LIMITATION OF THE STUDY
During the course of this investigation, the researcher experienced several important problems, including a lack of funds, time constraints, and a shortage of research resources.
DEFINITION OF TERMS
COVID 19:Corona virus disease 2019 (COVID-19) is a disease caused by a new corona virus known as severe acute respiratory syndrome corona virus 2 (SARS-CoV-2).
INTERNATIONAL TRADE: International trade refers to the cross-border or geographical exchange of capital, goods, and services, regardless of whether the goods or services are necessary or not.