Supply side shocks

Supply side shocks - COVID-19

There have been many consequences because of COVID-19. One such consequence is the disruption in the supply chain. At the start of the pandemic when people, like factory workers got infected they were quarantined and treatment was given. At the first stage when one employee was affected the company allotted additional work to the non-infected factory workers. But after some time since many people got infected the factories were forced to close because of the shortage of labor. Salaries were also not given in the short term and many people were also laid off. This condition was prevalent at the start of the pandemic and is continuing even now in some parts of the world.

Since labor is a variable cost in the short term the employers can lay off the employees but they will also incur costs such as capital which are fixed costs in the short term.

Some industries were affected even when they had large supply, like the milk industry. A cow gives milk daily and milk supply is almost at the same level every day. When the pandemic was intense there were countrywide lockdowns implemented because of which transport got affected. Educational institutions, restaurants, Small scale industries were forced to close. Transport was also stopped and shops were opened only for three hours.

Since the transport sector got disrupted the farmers were not able to sell their milk and started dumping them in their fields. The minimum support price given by the Governments were very much less than what they would get. But, in the case of retail shops, people were fighting for getting milk as there was no stock at the retail level.

So, I conclude that a decrease in the transportation of the product also results in disruption of supply.

Comments

Korean War | change in position of the 38th parallel

Korean War history and the 38th parallel North Korea is an isolated nation that proclaims its southern neighbor South Korea as its enemy. North Korea blew up its joint liaison office with South Korea on 16 June 2020, in a dramatic and carefully planned display of rancor toward its southern neighbor. Till the end of the Second World War, there was no separate North and South Korea and they were collectively called Korea. In this article, we will see what led to the separation of Korea and the Korean War, which was fought after the separation in detail. Korean war led to the split of North and South Korea Separation of Korea At the end of the Second World War, Korea — which had formerly been occupied by the Japanese — was divided along the 38th Parallel (38 degrees North) by the United States (US) military planners Dean Rusk and Charles Bonesteel, as a temporary division of the country. But the onset of the Cold War (rivalry that developed after World War II between the US and the Soviet

Maximum time difference on Earth - 26 hours

maximum time difference Earth's largest time difference: Time Zone may be used to refer to the local time of a country or a region. Time zones in the world are obtained from the UTC. If each time zone were 1 hour apart, there would be 24 time zones in the world. The clocks throughout the World are not adjusted for Daylight savings as all are under the regulation of a Coordinated Universal Time (UTC). UTC is 0 hours which means any area on the Earth can only be ahead (+) or behind (-) the UTC. We know that there are 24 hours in a day, so we may think that the biggest time difference between two points on the earth would only be 24 hours. But, according to the standard time (UTC) which we follow, the biggest time difference is 26 hours. The reason behind this is because of the man-made imaginary International Date Line (IDL) which was agreed in 1884 at the International Meridian Conference (IMC). The IDL serves as the "line of demarcation" between two consecutive calendar

Penguins contribute to Climate Change

Penguins contribute to climate change The Earth’s average temperature has been keeping on increasing at a rapid pace over the past few decades. A major problem that contributes to the increase in global temperature is the presence of greenhouse gases in the atmosphere. When the Sun’s energy reaches the Earth’s atmosphere, some of it is reflected into space and the rest is absorbed and re-radiated by the greenhouse gases. The absorbed energy warms the atmosphere and therefore the surface of the world. This process maintains the Earth’s temperature at around 33 degrees Celsius warmer than it might rather be, allowing life on Earth to exist. Climate forcing is the change in the balance between radiation coming into the atmosphere and radiation going out. A positive radiative forcing tends on the average to warm the surface of the world, and negative forcing tends on the average to chill the surface. Likely, human activities such as burning fossil fuels, agriculture, and land clearing are

nothing is frivolous

Search This Blog