How the World is Turning Inward Due to Covid and Why It is Important for All of Us
Why the World is turning inward and how Self Reliance is the New Mantra?
As the Covid Pandemic rages worldwide, shutting borders and closing down international trade, it is important to ask whether the World is Turning Inward and turning its back on interconnected and integrated business models.
For instance, all nations worldwide have banned international travel and even those that are opening up are doing so selectively.
This means that without the possibility of travelling around the world, business deals and face to face client vendor meetings are off the table.
Next, more and more countries are calling upon their people to be as Self Reliant as possible.
An example of this is the Atmanirbhar Policy announced in India that calls for the nation to be as self reliant as possible without depending on others.
Therefore, along with the end of globalization, the Covid pandemic can be thought to be ushering in new models of Be Local as much as possible.
Moreover, global businesses are already shifting their supply chains to minimize the risk of disruptions and this means that such supply chains would be based on local and nearby procurement and manufacturing facilities soon.
Why the Bans on H1B Visas and Foreign Students Should Worry All of Us
So, what does this inward looking approach mean for students and professionals? To consider the impact, let us look at what the United States is doing in this regard.
Long considered a bastion for immigrants and professionals from around the world to come and propel its economy, it is now banning H1B Visas so that more jobless Americans are hired instead of foreign professionals.
Moreover, President Trump had also toyed with the idea of sending back foreign students since there are no physical classes and pedagogies and hence, he reasoned that they can continue their courses online back in their native countries.
In addition, nations worldwide are also limiting the intake of students and foreign workers in their countries so as to placate the native voters worried about their jobs being taken over by immigrants, especially now that the Pandemic has rendered them jobless.
The point to be noted here is that since the widely held perception about the Coronavirus is that as it spread across the world due to our integrated global economy, the cure for the same means that we turn back on everything and anything global and instead, become as local as possible to contain the outbreak.
As Covid is perceived to be Due to Globalization, the Cure is To Go Local or Be Glocal
Indeed, the Covid Pandemic can be thought to be the most serious challenge for businesses and policymakers since the Second World War or even before that as this time around, this outbreak threatens the entire business and trade paradigm that has been put in place over the last century or so.
For instance, already President Trump is talking about the China Virus and how he plans to hurt China for exporting the virus to the rest of the world.
What this means is that the Post Covid World might yet see a US-China clash either directly or through proxies.
Already India is banking on the US to counter a belligerent China and in the months to come, it would not be a surprise if there are more such conflicts.
Moreover, with Chinese Apps such as Tik Tok banned in India and being considered to be banned in the US, the economic impact of Inward looking policies is likely to hurt global businesses.
In addition, with the widely held feeling that the Coronavirus spreads across borders due to our integrated business model, there is a possibility that the Old Models would be dismantled and new paradigms put in place accordingly soon.
How the Present System is Proving to be Resilient and Why Technology Might Save Us
Having said that, one must also look at the present situation in a Pragmatic manner. For instance, the world is too interconnected to tear down the structures overnight and hence, despite setbacks, we might yet see the resurgence of our global ways of doing business.
Indeed, if not anything, the Covid Pandemic has strengthened some of these business models as global firms are now resilient enough to withstand more knocks and blows to their wellbeing.
For instance, tech firms worldwide have adopted Work from Home business models and many of them are actively incorporating tech driven digitization of their businesses.
What this means is that technology might very well Save the World as global businesses use it to thrive and prevent disintegration.
Of course, the rising Xenophobia and Anti Immigrant sentiments across the world mean that there is a possibility that Going Local would prevail.
Given political compulsions to pander to the voters, it is certain that we are in for a rough ride.
Therefore, what one can expect is that there would be Pulls and Pushes as far as Global and Local are concerned and it is better to be Glocal or to Think Global and Act Local accordingly.
The New Normal and the Resulting End of Normal
Last, whatever be the shape of the future, one can be certain that it would be a bumpy ride and with all the disruptions and dislocations, the best that businesses worldwide can do is to be prepared for uncertainty and chaos.
The New Normal might very well mean that there is No Normal and hence, we might yet bear witness to a world that is anything but familiar to the one that we have gotten used.
Chance Favours the Prepared Mind and so, being prepared for disruption would be the best antidote to the prevailing confusion around us at present.
Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.