business – Page 5 – Harrison Global Capital

How COVID-19 Has Impacted Global Exports

Global exports have been impacted by the outbreak of COVID-19 around the world. Here are the areas that can be clearly identified.

Global trade has experienced a huge boom over the past century due to advances in transport and information technology. Particularly over the past couple of decades, a country like China has been able to position itself as a global manufacturing hub.

The country has also led the rest of the world in the exports of consumer items, and parts that require assembling elsewhere. The COVID-19 pandemic, originating from China, has caused a lot of disruption that has significantly reduced output or even completely halted production in some areas.

After months of economic and social inactivity due to the Coronavirus lockdowns, countries were eager to reopen and return to, at least, a semblance of normal, regular life. These reopening steps were not without consequences as a resurgence of the virus spread was experienced.

The Impact Fronts

Some states in the USA had to reenact the lockdowns, while regions in China underwent widespread testing, as well as reintroducing some form of lockdown too. In this post, we explore the impact of the resurgent outbreaks on the global export scene.

The decrease in man-hours: Manufacturing is one of the few industries where the now popular “Working from Home” system is difficult to implement. Manufacturing crews have to be on-site to get the job done, but with people trapped at home due to lockdowns, operators are unable to work, consequently resulting in lower output and exports.

Another way in which these effects play out is in manufacturing companies having to lay off their workforce due to decreasing revenue. It then becomes a circular cause and effect cycle of the lockdowns leading to fewer hands on plants, reducing revenue, and in turn, staff lay-offs.

Scarcity of consumer goods or supply glut: As production levels drop, consumer goods producers like China, the US, and some European countries may not meet the regular demand for export commodities; hence, the potential shortage of those products.

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Conversely, there is also the likelihood of a drop in demand as the rest of the world is equally dealing with some form of lockdown and reduced activities too (this was the case with crude oil where futures were traded at negative prices due to weak demand). Whichever way this plays out, it will ultimately lead to an imbalance in global trade, which is not something we would like to see happen.

Unavailability of Assembly Parts: Manufacturers of more complex technological products like cars or heavy machinery depend on manufacturing hubs like China for parts to be assembled at local plants. A resurgence of COVID-19 cases in manufacturing hubs like this will lower the output of such plants, consequently affecting the global supply chain negatively.

All Hope is not lost

While the outlook may not seem so bright based on the above factors, governments and world leaders are rising to the challenge. There have been a series of capital injections and efforts to stimulate economies to get things running again.

Hopefully, these efforts will help to ramp up production on the supply side (exporting countries) while boosting economic activity on the demand side (importers and consumers) to return some balance to global trade.

COVID-19 Has Altered The Business of Global Conferencing : Here Are The Keynotes

Global conferences have taken a hit with COVID-19 running riot across the globe. Fast-thinkers in the field have switched to online conferences to make up for the physical deficit.Here is what to know.

The raging pandemic has redefined how people perceive what might be the right way to do business around the world. What with lockdowns and shutting down of national borders? Dynamism seem to be the way to go here.

For people in the business of organizing conferences that draw participants around the world, they have had to think twice and fast.

Global Conferencing

Global conferences are platforms that provide the opportunity for a heightened level of knowledge sharing and collaboration on an international scale. Topics as far-ranging as science, art, computer programming, diseases, world economy, and virtually any other discussion point you can think about all have global conferences dedicated to them.

Beyond just sharing knowledge, collaborations and networking occur, leading to the development of new ideas and adaptations.

The traditional global conference structure has been seriously threatened by the outbreak of the Covid19 pandemic in two significant ways. The first is the travel restrictions that have grounded many flights and closed a significant number of airports around the globe.

The second and perhaps most important threat is how infeasible it is to have a global conference with hundreds of people in attendance due to the risk of spreading the infection. This raises the question about what the future of global conferences is going to look like? Is it over or can we find a way around this?

The Internet to the rescue

What if global conferences were moved online and hosted over the internet? We’ll consider the pros and cons below:

Possible Drawbacks

Technology Failure: Having server downtimes or hardware problems in the middle of a presentation at an online global conference can be messy, drawing everyone back and slowing down the pace of the whole conference.

Coordination: Organizing people is always a herculean task even with in-person events. With an online global conference, it might be more difficult to get everyone to work on schedule as the urgency of face -to- face interaction is lacking.

Advantages of Online Conferencing

Lower costs: Think of all the funds that go into organizing a regular global conference: hotel bookings, centre payments, flights to and fro, and a host of other logistics.

These costs will be eliminated both for organizers and participants. Perhaps these funds can be invested in getting better and faster internet connections for participants, solving the first point under the possible drawbacks

Flexibility: Participating from home or the office might make coordination difficult. On the other hand, it also gives participants the freedom to spend more time on research and fine-tune their findings and knowledge for sharing with others from around the world.

Better Accessibility: Even before COVID-19, lots of interested people are denied the opportunity to participate due to the inability to get visas for the country in which the conference is holding.

For some others, they are unable to transport and feed themselves throughout the conference. Hosting the conference online eliminates this problem as way more people can participate remotely, which is good for everyone involved.

Conclusion

There’s a lot to be said for both sides of the argument about moving global conferences online. However, the pros seem to outweigh the cons, making it a quite an attractive option.

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As COVID-19 Unsettles Global Business, Here Are 5 Client Management Tips That Can Help You Save Money

With COVID-19 putting everyone on tenterhooks, the likelihood of burrowing deep into a shell is high. However, you need these tips to make the best of the situation.

Businesses all over the world have taken hits from the current pandemic. From closing down completely to losing lots of customers, the effects vary depending on location, business size, and industry of operation.

On the other hand, some businesses seem to have the whole situation hacked; increasing their customer base, cementing the loyalty of existing customers and, overall, even doing far better than they were during the pandemic.

What differentiates the survivors from those who are going under? A big part of the answer has to do with client management.

What You Need To Do

Client management is how a business interacts with customers to ensure they’re satisfied with their services, increase retention rate, and ultimately get references to new customers. Below are some client management tips for these uncertain times:

Stay in Touch: We understand that you’re struggling with other parts of your business and trying to hold things together. However, it is important that your customers don’t feel disconnected from you during this period. While it’s “just business”, don’t forget that your clients are still human and we all crave some sort of connection.

You don’t necessarily have to communicate every day, but a weekly newsletter may not be a bad idea. “Out of sight is out of mind” goes the saying, so seeing a mail with the name of your business keeps you in their mind and they will be less tempted to go shopping for options among your competitors.

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Resist the temptation to skimp on quality: This is important because almost everyone else is doing this and avoiding that trap will stand you out. With lower revenues, businesses are looking to cut costs by lowering quality while selling at the same price.

If you have to, you might even raise prices slightly, but if you communicate properly (check point 1 above), your customers will appreciate your commitment to quality and keep patronizing.

Pay extra attention to feedback: With lockdowns and working from home arrangements, people have more time on their hands and feedback about products and services will be on the increase.

Watch these closely to feel the pulse of your client base and tailor your services and products to fit their desires. A golden rule of client management is that the customers themselves are your best teachers. Listen closely enough and they’ll show you how to serve them.

Throw in as many freebies as you can afford: A marketing and customer service trick that’s as old as time, giving customers a bit more than they paid for is always a sure winner. Either it’s free delivery or some form of discount, your clientele will be grateful, and you know what that means; loyalty.

Think like a product manager: At the beginning of every week, you should ask yourself or your team “how can we make the experience better for our customers this week?” It may be as simple as adding a button to a mobile app interface or reducing payment and checkout to just one page. Consistent improvements show customers that you are committed to serving them better.

Managing clients effectively is a tough balancing act, but following these will not only save you from losses, but protect your bottomline.

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Investing in Tough Times: 3 Lessons You Can Use for Stock Picks

In times of great peril on the earth, people embrace doomsday scenarios and let go of rationality. In these days of rage, here are tips you can use for stock picks.

Tough times are always accompanied with a hit in stock prices the world over, and the reason is that many investors tend to get uncomfortable and sell off their shares. Recession is a prolonged period of significant decline in economic activity.

However, if people can learn to forego fear and learn how to invest properly, it could turn out to be a great opportunity for high returns. Before you rush into investing your hard earned money vaunted finance experts are all for it, you should consider the following for your stock picks:

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1. Investing in High-Quality Stocks

Investing in high-value company stocks is one of the relatively safest things to do in tough times. Many of these companies have long business histories of strong balance sheets, which enable them to survive a prolonged period of weakness in the market.

Though many of them have also dropped in value, it is noteworthy that their decline isn’t a result of poor management but an unfortunate world catastrophe. When things return to normalcy, most will bounce back, and you’ll be a big winner if you have made long-term investments in these companies.

Some of such high-quality stocks are:

Healthcare

Medical services are always required irrespective of the economic condition, and investing in pharmaceuticals and medically related firms is one of the safest means of minimizing risks and ensuring high returns.

As the coronavirus halts the global markets and people are forced to stay at home and self-isolate, companies that produce home medical equipment like Adapt Health Corp are benefiting from the effects of the coronavirus pandemic.

Tech Companies

Over the years, tech companies have also proven to be resilient in tough times. For example, Microsoft stocks fell by 5.4% in February, this created a very rare opportunity to obtain such high-value stock at that cheap price. Next-generation technology growth catalyst companies like Intel are also a nice place to invest for unbelievable maximum returns.

2. Non-Cyclical Stocks

These are defensive stocks that are not affected by a decline in economic growth. These stocks are from companies who produce and distribute essential goods and services needed daily, including staple foods; utilities, such as power, water, gas; and waste management.

Unlike cyclical stocks, these stocks do not have any direct correlation to the economy, and that’s why they are resistant to the effects of unstable markets. A good example of such stock is Walmart, which has recorded an ever-increasing high value despite the coronavirus outbreak.

3. Diversification

Learning how to diversify is very crucial when it comes to investing in tough times. It would be unwise to put all your eggs in one basket, and that’s why every smart investor spreads their investment over a range of investment vehicles.

It is even wiser if you spread your investments over different sectors. Many smart investors have used this management strategy that combines different investments in a single portfolio. It is aimed at yielding a higher return while minimizing risks.

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Are Hedge Funds Safe in Unstable Times? Here Are A Few Tips You Can Use

Hedge Funds tend to outperform individual stocks as a result of their diversification. There is a bit more you should know as you read on..

Nobody would have accurately predicted that a pandemic would come to change the course of activities all over the world, but smart investors are always prepared for such a time as this. Do you also want to take advantage of this COVID-19 outbreak to invest in hedge funds?

I know you feel unsafe and insecure about investing this period, and it’s perfectly normal to feel that way, mainly because stocks – even of bigger corporations – are generally depreciating, oil prices have reduced, gold is hitting rock bottom, and many more unfortunate economic events are happening.

Notwithstanding, is it safe for you to invest in hedge funds in this unstable period? I am going to share some of the properties of hedge funds with you in the following paragraphs so you can decide if investing in hedge funds is right for you this period.

1. Diversification

Hedge funds offer an array of investments such as long or short, tactical trading, events-driven or emerging markets, and managers take advantage of diversified investments to earn the highest return for the least risk.

Hedge funds focus on specific risks to reduce its risk exposure, by a large percentage, to the general market movements. This technique works because these investments react differently to the same economic event. So, hedge funds generally outperform equities with much lower volatility even in unstable times.

2. Long or Short Selling of Hedge Funds

This is a killer strategy that most hedge fund managers use; it involves buying and selling stocks that are undervalued. Managers target shares that are about to hit rock bottom, and they borrow it. Then they make a gross profit by selling out the borrowed shares and buying it back when it falls.

However, there are risks associated with this if the market conditions do not go as planned. It may lead to a situation called a ‘short squeeze.’ Long term selling, on the other hand, involves buying undervalued stocks with the hope that it will appreciate with time, and then sell it when it does.

3. Transparency

Hedge funds are not regulated by the Securities and Exchange Commission, but the Dodd-Frank Wall Street Reform and Consumer Protection Act passed in 2010 requires them to be transparent. The transparency, however, does not include disclosing where investments are made.

4. Loss Reduction

Most hedge funds have highly financially intelligent workers, who do not only employ aggressive investment strategies to maximize returns as well as reduce risks but are also very good in financial management to be factual. They provide investors with the best information there is and also use selective strategies that they believe will add to the bottom-line.

5. Risks and Returns

According to the Securities and Exchange Commissions, hedge funds managers in a bid to maximize returns often engage in many risks. If things do not turn out as planned, it may lead to a bottom-out in returns. Also, the lack of a regulating body makes hedge funds prone to the risk of fraud.

Are Hedge Funds Worth It this Period? Final Words

Hedge funds are low-risk investment vehicles, which are not entirely dependent on the situation of the general economy, mainly because of how it is run. So, it is worth trying; however, losses can be incurred like every other investment vehicle.

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