New Normal

Covid-19: what's the new normal for supply chains, working capital, and trade finance?

Companies must decide between capital expenditure spending amid an unknown future or accept stretched balance sheets in a post Covid-19 world.

Until a vaccine is developed and becomes widely accessible, businesses remain in the middle of a Covid-19 transition.

The pandemic creates new assumptions over future operating costs, from social distancing to office space demand. But identifying which changes are temporary from those that will become permanent spurs new challenges going forward.

The uncertainty also reexamines multinational supply chains. Although economic factors established the current system, renewed political opposition and pending trade tariffs question the sustainability of the existing framework. The novel coronavirus appears to be the most effective conduit to prompt change, amplifying the influence from any politicians before it.

This entails that...

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