While coronavirus continues to fuel health concerns all over the world, the outbreak is having an even larger impact on global supplies for all sorts of goods that come from China. If you’re in the market for any number of products that come from – or rely on parts from China – you won’t have to actually contract coronavirus in order to feel its effect in your wallet.
The reason? Supply shock.
To put it simply, supply shock is when something big and unexpected disrupts what would be the normal supply of any given product. Coronavirus is putting major stress on the Chinese industry with factories and offices closing to prevent the spread of the virus. And, experts say it will likely lead to supply shock here in the United States.
In the 1970s, a sudden embargo on oil from the Middle East caused a supply shock in the U.S. All of a sudden, gas was in short supply and people faced long lines at gas stations just to fill up their tanks.
But these days, we don't rely on China for our oil. We rely on China for all sorts of things from electronics to clothing to medical equipment.
Because a lot of Chinese factories have shut down amid the coronavirus outbreak, those products aren't being made. That means they're not being shipped to places like the U.S.
Apple is warning that global iPhone shortages are coming because of this, and that's just the tip of the iceberg. Samsung, Microsoft, IKEA and Hyundai are just a handful of companies that have reportedly seen temporary closures at factories and offices in China recently. That means you could notice empty shelves in some of your local big-box stores in the next couple of months.
►Subscribe:
►Website:
►Facebook:
►Twitter:
10News WTSP is the local CBS affiliate for Tampa Bay, Florida. We deliver the best in breaking news, live video coverage, and original journalism covering topics that matter most to Floridians. Subscribe for more; videos are updated daily!
0 Comments