I need you to answer 3 discussion posts from my peers and state whether you agree or disagree. (BUSI 2043 International Business Environment)

Post 1. I believe that the pandemic and now the Russia/Ukraine war and the rapid change they have brought are outpacing the government's capability to manage the global economy. One example is Europes energy. With Russia being the largest source of energy for European countries, consumers are seeing soaring prices in energy costs. This is forcing governments to focus on alternative solutions for energy besides fossil fuels. A shift that would move countries away from highly polluting fuels, often supplied by only a handful of major producers, to sources of low-carbon energy such as renewables and nuclear (International Energy Agency, 2023). To help combat this IEA members countries agreed to release their emergency oil reserves in order to help reduce the strain that the European countries are experiencing due to the war. Another example is our supply chain disruption due to the COVID 19 pandemic. The economy is feeling the effects of high inflation rates due to the increase in the cost to ship goods around the world. shipping freight accounts for the transportation of at least 90 per cent of goods around the world, any sudden alteration in the costs of shipping will impact supply chains. According to the Global Container Freight Index, the average global value of transporting a container went from $1,362 USD in November 2019, to $9,628 in February 2022 (Ricaurte, 2022). Smaller businesses and farmers are having a hard time keeping up with the higher shipping costs. Further to that the effect on the North American labour market, when cargo comes in and there are not enough labourers to unload the cargo this causes a bottleneck effect which results in the ships needing to stay in port longer. This combined with the higher freight costs, many shipping companies are choosing to not fill their shipping containers in North American ports and have them return to Asia. Which results in a loss for our North American exporters. (Ricaurte, McGill Business Law , 2022). Although these issues have slowed down Canadas economic growth it has not halted it. However, the citizens are still feeling the pressure and it is becoming increasingly difficult for middle-class citizens to make ends meet

Post 2.The rapid changes caused by the COVID-19 pandemic and the Russia/Ukraine war have indeed presented significant challenges for governments in managing the global economy. While it is difficult to make conclusive statements about the capability of governments as a whole, we can examine two current examples that highlight the complexities and limitations they face:

Global Supply Chain Disruptions: The pandemic has exposed vulnerabilities in global supply chains, disrupting the flow of goods and services across borders. Governments have struggled to effectively respond to these disruptions and ensure the smooth functioning of supply chains. For instance, the shortage of critical medical supplies, such as personal protective equipment (PPE) and ventilators, highlighted the challenges in managing the global demand and supply for essential healthcare products. Governments have had to implement various measures, such as export restrictions and prioritization of domestic needs, to address these challenges. However, these actions have often led to trade tensions and disruptions, creating further complexities for governments in managing the global economy.

Geopolitical Tensions and Trade Wars: The Russia/Ukraine war has intensified geopolitical tensions, which can have far-reaching effects on global trade and investment. Governments involved in these conflicts may resort to trade restrictions, sanctions, or other measures that disrupt established economic relationships. For example, in response to the Russia/Ukraine crisis, several countries have imposed sanctions on Russia, targeting specific sectors or individuals. These sanctions can disrupt trade flows and investment patterns, affecting not only the countries directly involved but also their trading partners. Governments are faced with the challenge of managing these geopolitical tensions while minimizing the negative impact on the global economy.

These examples illustrate how rapid changes caused by the pandemic and geopolitical conflicts can outpace the capability of governments to manage the global economy effectively. The interconnected nature of the global economy, combined with the speed at which events unfold, often requires swift and coordinated responses from governments. However, navigating complex geopolitical dynamics and addressing the multifaceted challenges of supply chain disruptions can strain the capacity of governments to effectively manage the global economy.

Post 3. The global landscape is shifting at an unprecedented rate, driven mainly by unforeseen challenges such as the COVID-19 pandemic and the Russia-Ukraine war. Both events have had far-reaching effects on the global economy and brought to the forefront the question of whether the rapid changes are now outpacing the ability of governments to manage the global economy.

Example 1: The COVID-19 Pandemic and Supply Chain Disruptions

One of the primary examples is the COVID-19 pandemic's impact on global supply chains. The pandemic has exposed the vulnerabilities of highly interconnected and geographically extensive supply chains. National governments worldwide struggled to manage these disruptions due to the sheer magnitude and complexity of the issues, from severe labour shortages to transport restrictions and significant logistical challenges.

The efforts to tackle these problems often faced limitations due to national boundaries, as every country simultaneously fought the same issues. For instance, efforts to streamline the supply of personal protective equipment (PPE) or vaccines were hampered by export restrictions or hoarding by some countries. These issues highlighted the need for international cooperation and the limits of what national governments can achieve alone.

Example 2: The Russia-Ukraine War and Energy Markets

The Russia-Ukraine war provides another example. Russia is a major player in global energy markets, especially in natural gas, and the war has caused significant uncertainty and volatility in these markets. National governments, particularly those in Europe, are grappling with this crisis and struggling to ensure energy security for their citizens.

Due to the interconnectivity of the global energy market, actions by one government can have repercussions for others. Sanctions imposed by a coalition of Western governments on Russia, for instance, have led to energy price spikes not only in Europe but also in other parts of the world. This has strained the capability of individual governments to manage their economies effectively, as they are exposed to the actions and reactions of others in the interconnected global economy.

These examples show that national governments, despite their efforts, are facing significant challenges in managing the impacts of rapid global change. It highlights the need for stronger international collaboration and rethinking current global governance structures. It also underlines the need for governments to enhance their capacities and develop new strategies to navigate the complexities of the global economy, which is increasingly shaped by factors beyond their control.

In conclusion, while national governments still retain significant influence, the pace of global changes, exemplified by the pandemic and geopolitical conflicts, seems to be outstripping their capacity to manage the global economy effectively. The way forward would likely involve greater international cooperation and a rethinking of how we approach global governance and economic management.