Week 5 Raquel Thibodeaux covid 19

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Embry-Riddle Aeronautical University *

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335

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Business

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May 22, 2024

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docx

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4

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5.2 Case Study: Impact of COVID-19 on Global Economy R Embry-Riddle Aeronautical University BUSW 335 – International Business Dr. February 11, 2024
Several sectors were affected by COVID-19 pandemic. A few of those sectors were automotive, healthcare services, airlines, and hospitality. Governments all across the world did what they believe necessary to help the economy stay afloat. In 1924, Germany implanted Kurzarbeit. Kurzarbeit, is a policy which Germany implanted which allows employers to reduce employees working hours instead of completely laying them off entirely during an economic downturn (Kurzarbeit: Germany’s Short-Time Work Benefits, 2020). During the pandemic caused by COVID-19, the German government expanded the policy and subsidized this program in order to help these companies retain their workforce, even when demand dropped. This policy reduces unemployment and provides financial support to company workers. News report such as on from the Guardian state that what Germany is doing by implementing policies such as Kurzarbeit, is a scheme to avoid paying unemployment. Other countries such as Denmark, Sweden, Norway are a few that tried Kurzarbeit. Like every other country, Germany created a stimulus package by introducing multiple economic stimulus packages which help support struggling industries such as automotive, manufacturing, and hospitality. In June of 2020, Germany implemented a stimulus package which helped with approximately $140,318,750.00 thousand dollars (I converted this from Euro to Dollars), this package was to help provide grants for small businesses, funding for infrastructure projects to stimulate the local economy, and tax relief.
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