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Professor Adir Dos Santos Mancebo Junior
ECO2013
17 March 2020
Macroeconomic effect on the coronavirus outbreak
As of March 2020, the number of people infected with the Covid-19 has almost surpassed
200,000, with nearly 8,000 deaths. In order to contain the outbreak, many counties have full or
partial quarantines. As the number of cases and deaths across the world continue to rise, the virus
is also taking its toll on global economy.
The outbreak started in China, which is the heart of complex supply chains for many companies
located out of China due to offshoring. This country has also by far the most coronavirus cases,
which makes this situation even worse. Many factories had to close their doors, resulting in
shocks across a wide range of industries.
For instance, the South Korean carmaker Hyunday announced that situation will halt their
production in domestic countries because of the components shortage. Many other companies
around the world also announced that they are running out of components and might have to
reduce or halt their production.
