The implementation of appropriate financial management approaches is essential for the maintenance of the economy in the best possible ways. The onset of the coronavirus pandemic (also called the COVID-19 pandemic) has resulted in the advent of immense levels of stress on the economies of people across the globe. The following slides have clarified the impacts of the pandemic on economies in general. A prominent focus has also been provided on the different financial approaches implemented by different countries. The selection of the best strategy among them has also been ensured.
The onset of the coronavirus pandemic has resulted in the disruption of normal life in regions and countries across the world. The movement of people and even goods has been restricted. This has resulted in the decline of the economic activities of several countries (Ozili and Arun, 2020).
The impact of the coronavirus pandemic on economic activities has mainly been negative. A lack of movement of goods (due to restrictions in transportation) and individuals has directly led to a lack of service completion aspects for organizational entities of regions across the globe (Ozili and Arun, 2020).
The onset of pandemics led to a rise in poverty and the further deterioration of situations for the poor people. The decline in employment and the absence of proper tactics for organizational operation completion have been among the other main negative impacts of the pandemic on economies of various regions (Couch et al. 2020).
The implementation of financial management leads to the planning and organization of financial activities. Furthermore, the initiation of appropriate financial management approaches leads to the gain and eventual utilization of financial resources in the best possible ways (Prihartono and Asandimitra, 2018). The economies of different regions are dependent on financial management strategies for the onset of desired levels of success.
The United Kingdom has ensured the initiation of greater levels of investment and development focus on the technology sector. The initiation of tech investments has helped UK sectors like the food industry in a proper way (Rowe, 2021). This is a part of the larger country-wide effort of initiating turnaround planning for dealing with the pandemic’s economic effects. These points, coupled with the removal of restrictions and lockdowns in planned ways, have been beneficial for specific entities. UK’s implementation of a green approach has been praised by the Financial Conduct Authority (Zafar, 2021).
The aforementioned points highlight the main positives and justifications behind the use of this approach. Financial approaches combining turnaround planning with smart investments can prove to be beneficial in the given context.
China has initiated a planned financial management approach as well. The fact that the disease has been contained from excessive spreading has been helpful in ensuring its implementation of a robust financial management tactic. China has ensured the lifting of excessive restrictions on foreign firms for promoting foreign inflow and ensuring management of operations and financial aspects (Madera, 2020). The outflow of capital is still controlled.
These points indicate the main advantages of this kind of approach. The initiation of inflow can help increase the chances of economic recovery, while also mitigating aspects like unemployment. Pandemic-enforced unemployment has been a prominent cause of concern min several regions (Couch et al. 2020).
India has focused on the implementation of the liquidity management approach for the sake of ensuring the recovery of its economy in times of the coronavirus pandemic. Liquidity management involves greater access to cash as per requirements for the business entities (Subrahmanyam et al. 2017). The initiation of investments has been focused on in this strategy.
The initiation of liquidity management helps in the onset of multiple advantages. This kind of approach also increases the chances of long-term recovery from economic losses. The Reserve Bank of India has also focused on the restoration of liquidity management operations to normal levels as soon as possible (Dugal, 2021).
The US has implemented a major and integrated strategy focused on working capital management for the sake of ensuring the recovery of the economy from the pandemic. The passing of a federal stimulus bill has been one of the initiated measures (Walsh, 2021).
The aforementioned points indicate the positives of the financial management strategy implemented by the United States for ensuring the recovery of its economy from the COVID-19 pandemic. The impacts of the pandemic on several states of the US (from a financial viewpoint) have not been as bad as predicted on account of the initiated measures (Walsh, 2021). This approach, however, is more suited for countries with immense financial resources such as the United States.
While all strategies have their share of advantages, the financial management approach implemented by the UK has certain points more advantageous than the other reviewed approaches. UK’s strategy is also more versatile and can be implemented by most other countries as well.
The economic impacts of the COVID-19 pandemic have been immense. The initiation of integrated and planned financial management approaches is essential. UK’s integrated financial management approach combining turnaround planning, smart investment and even green planning has high chances of success (along with ensuring the potential mitigation of future emergency situations).Order Now