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Entrepreneurship

“Coronavirus –

a Good Test for

Economic Strength”

The unprecedented spread of the Coronavirus is a good test
for the economic strength of many countries (i.e. including
enterprises) because as nations aggressively battle it, they tend
to assume an ”autarky economic system” which inherently
requires one to be self-reliant or self-sufficient. The autarky
economic system often creates a landscape similar to that
when a country is at war with its neighbouring countries and all
the supply lines are made to be closed thereby relying only on
internal (domestic) production and supply capacities.
Undeniably so, an autarky economic system is the opposite
of a free market or liberalised economic system and tends to
induce affected countries to have the appetite of wanting to
immediately close their respective borders thus restricting both
movement of goods and services. This includes prohibiting
movement of natural persons which is trade in services as Mode
IV in the international trade arena.
Observably, almost all countries resorted to domestic lockdown
which is a measure inclined to inward looking and/or closing
of their respective borders which is also a measure inclined
to outward looking as first line of rapid response to prevent
the speed and spread of this awful pandemic, namely, the
Coronavirus. Notably, some leaders and/or those frustrated
with its (coronavirus) speed and spread have even accorded
it rather different names such as ”Chinese virus or Kung-Fu
virus”. This is the evolution of things and it’s no stranger given
the circumstances. Astonishingly enough, this measure (i.e.
locking down) is becoming a common phenomenon globally
because though not comparatively assessed against not
pursuing it, countries are excited to adopt such promptly. The
lock down immediately attempts to achieve social isolation
of human beings which in turn minimises the behaviour of
economic actors such as businesses or transactions. The
silent consequence of it is an interesting theory of economic
test which comes with the unavoidable change of the
economic structure arising from concurrent measures
of locking down and closing of country borders. Both of
these measures significantly slow business and stops
smooth (free) cross-border trade and have almost
an instantaneous effect on both micro and macro-
economic fundamentals. The human being’s value
chain of both socioeconomic infrastructures is being
threatened by the invisible enemy who has no known
territorial site and the end to the escalation or spread
is in the host or carrier of the virus.
Indisputably, coronavirus has the
potential to dislocate industries because
production and distribution is adversely
affected and this causes a downward shift
in the equilibrium curve, thereby slowing
industrial growth and negating macroeconomic
fundamentals such as supply volumes, labour force,
changes in product mix and tax revenues. However, this situation
causing the industrial equilibrium curve to shift could be an
opportunity for some entrepreneurs to undertake diversification
into industries that are essential in addressing the coronavirus

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