Crisis will change the Polish and global economy.

Economic or political disasters introduce changes in the world economy and in national economies. Economists are also expecting change now, although we will know the effects of the pandemic in a few months. The recession of globalization and greater state interference in the economy are predicted.

There are widespread opinions that a pandemic will change the business model, especially of international corporations. Production facilities depend on supply chains, sometimes including subcontractors in several dozen countries.

The extensive chains allow you to minimize costs, especially labor, and take advantage of excess employees in developing countries, where wages are relatively low. Their amount depends on average productivity, but factories built by international corporations in less advanced countries may have productivity comparable to that in rich countries.

Companies just need to properly train their employees and build well-functioning production lines. An international corporation can thus achieve high efficiency at low labor costs. Just in time deliveries are another element of the current business model, which means maintaining minimum and sometimes zero stocks of spare parts.

Success depends on the precise coordination between enterprises and their suppliers. If any item of production is delayed and there is no stock buffer, production may suffer. However, if everything works fine, this strategy significantly reduces the costs of maintaining and financing inventory.

When the crisis associated with the COVID-19 virus broke out, some of the nodes in this chain, especially those in China, stopped working, causing production to be reduced or even stopped in other countries. Many experts believe that experience with closing borders may prompt corporations to relocate production facilities to their home country or nearby.