Will Covid-19 Have a Lasting Impact on Glabalization?

Will Covid-19 Have a Lasting Impact on Globalization?
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Globalization entails integrating global economic and financial aspects, commerce, and communication. Cultural and social impacts intermix, and the world's economic flows are increasingly integrated. With many manufacturing companies closed, countries suspending movement and transport, and international mobility shutdown, Covid-19 has detrimentally impacted the global commercial networks. The immobility production factors are anticipated to persist soon, thus paralyzing globalization. The pandemic might change the world order forever. It is also expected that the Covid-19 pandemic will create an impetus for a less prosperous, less free, and less open world, thus prompting the death of globalization. Nevertheless, it is time for multinational corporations to demonstrate their capacity to harness the optimal global capabilities to eliminate the health crisis and ensure sustainable recovery. It is also the moment that firms embrace innovations such as digital supply chains to help meet their client's needs across the world. This paper discusses that the Covid-19 outbreak potentiates a long-term impact on globalization by stalling airports operations, disrupting global supply chains, boosting global e-commerce opportunities, and the potential for international flows to swing significantly with macroeconomic phases.
The Covid-19 pandemic has directly impacted airports operations, thus stalling economic progress in emerging global markets. The financial crisis that would follow the pandemic implies reduced demand for airline services in the near future. Covid-19 has lowered passenger traffic globally. The disruption started in Asia-Pacific, but the prompt spread of the Coronavirus and the response measures implemented – including government directive to restrict international travel and subsequent airports closures – culminated in a 22.9% and 53.1% decline in air traffic globally in February and March, respectively (Twinn et al., 2020). This was equal to a 620 million reduction in passenger numbers within quarter 1 of 2020 (Twinn et al., 2020). The structural changes in demand and airlines' prospects might worsen the status quo, thus potentiating a big blow to globalization efforts. Airports will continue experiencing structural changes in the demand for their services due to the ongoing economic crisis following the Covid-19 menace. Airlines' performance would continue to be impacted by the lower-than-anticipated Gross Domestic Product (GDP) growth globally after the Covid-19 outbreak. The airlines' financial health will be adversely affected, thus slowing globalization efforts (Twinn et al., 2020). There is the potential for airlines to file for bankruptcy due to the current financial risks, especially for airlines serving global destination hubs.
The Covid-19 pandemic undermined global supply chain operations. The outbreak prompted lockdowns in China and a shortage of high-demand merchandize globally. It also triggered radical shifts in consumer demand, thus testing supply chain scalability. Amid the aftermath of the crisis, other geopolitical factors continue to put global supply chains...