Guest blog: Corona Virus, A greater risk to the world than to China
Guest blog by: Oscar Ugarteche (1), Alfredo Ocampo(2), OBELA (3) originally produced On December 31, 2019, the coronavirus (COVID-19) appeared in Wuhan, China. While this explains the speed of the stock market fall, it is not enough to explain why it resembles the experience of the 2008 - 2009 crisis. Even before the crisis, the global economic outlook for 2020 was even lower than that for 2019. The impact can be comprehended, understanding the importance of China in global value chains. China is the source of five branches of the world economy: pharmaceuticals, automotive, aeronautics, electronics, and telecommunications. The closure of China's factories and trade slows down the production of these five branches in the world./ The impact is an immediate slowdown in world production until it grinds to a halt. The origin of this is the world order established in 1990 by the United States when the wall fell, and simultaneously China was integrated into world trade, creating t...