How exporting, importing, and countertrade has been affected by the COVID 19
Exporting is the process where businesses sell services and goods to potential client’s other countries. Importing is the buying of services and products from other countries. Countertrade is an agreement that enables the trade of services and goods for other services and goods; they can be in five versions ,namely, barter, buyback, offset, counter purchase, and switch trading. The purpose of this paper is to review how exporting, importing, and countertrade has been affected by the COVID 19.
Most countries depend mostly on imports from developed countries. Most of this import are essential items for treatment and diagnostic processes such as medical masks and gloves respirators and oxygen concentration, to enable them in management of COVID 19. However, even the developing countries that have been affected by COVID 19, such as the United States, EU they account for 80% of imports. With the restrictions that most countries have taken minimize new infections like the stay and work from home campaigns has lowered the production of essential items since most of the producing countries like China have been affected severely, and most companies have closed down.
Export restrictions will create an increase of prices for goods and services and also cause distribution most of the countries have restricted their planes from going to countries that have been affected by COVID 19 like china and Italy thus export is affected especially goods that are transported via air this is mostly raw materials from countries that cannot manufacture goods but have raw materials. The major producer of critical products that are used for COVID 19 will restrict exportation because they will not want to experience a shortage in their countries. The reduction and restriction of exportation will lead to the rise of COVID 19 products.
Countertrade can be used to address the importing and exporting crisis in a way that the COVID 19 products can flow freely to different countries that they are needed. Thus, ensuring that their main aim is to maintain open markets in such difficult times.