Type
Essay
Pages
8 pages
Word Count
1848 words
School
Cambridge College
Course Code
Economics

Microeconomics

December 7, 2020
Running Head; MICROECONOMICS 1
C
Running Head; MICROECONOMICS 2
Corona virus epidemic has shocked the many economies in the world by bringing
economic activities to a standstill. Many economic sectors namely tourism and travel, food and
beverage, health, education, manufacturing etc. have been hit hard which has led to reduction in
production activities. This outbreak has also constrained cross country travel thereby
interrupting global supply chains leading to huge economic losses in countries. This report will
analyze the impacts of Covid-19 pandemic on the facemask industry in China as well as draw
recommendations on possible solutions as well as discuss the effectiveness of these proposed
solutions.
Globally many governments have made wearing of masks compulsory as a pre-condition
for lifting the ban on restriction of movement so that individuals can return to their normal day to
day activities. In future the demand for masks is expected to rise as a potential vaccine may be
months or years away from being discovered. A huge number of Covid -19 cases were reported
initially from Wuhan, China in towards the end of 2019 (Cui et al., 2019). This severe epidemic
is commonly transmitted through respiratory droplets from one person to another (Jefferson et
al., 2009), By the of March this year, the reported cases in China exceeded 80,000 with more
than 60 percent coming from Wuhan City and over 80 percent of the cases from Hubei province.
The World Health Organisation (WHO) in its recommendations regarding protective mechanism
against the virus advised the use of protective gears such as face masks so as to maintain
respiratory hygiene (World Health Organization, 2020). As a consequence, the demand for face
masks rose globally outweighing the supply thereby creating a shortage which became a major
social concern.
China is the largest producer of face masks globally and contributes to about 50 percent
of the production in the world (Cui et al., 2019). Normally, China has a potential to produce
Running Head; MICROECONOMICS 3
about 20 million masks in a day which is above the productivity witnessed during festive season.
However, even though full production capacity could be attained this may not cater for the
demand of the 1.4billion population per page in China under a compulsory face mask policy. In
order to reduce the spread of the outbreak the government of China imported between January
and the end of February this year, more than 2 billion masks and also extended the New Year

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