What Goes Around the World
WWC - Coping with Coronavirus
IN THIS SERIES OF ARTICLES TO HELP EXPATS DEAL WITH CORONAVIRUS, PROACT SAM EXPLORES HOW EXPATS CAN PROTECT THEMSELVES AND EXPLOIT OPPORTUNITIES PRESENTED BY THE PANDEMIC.
Part 7 - What Goes Around the World
ProACT Sam considers the dawn of new opportunities and how these relate to the basics that make the world go around.
CASH FLOW
Have you heard business leaders warning about the need for cash-flow?
Are you concerned about your income. Does your familyâs economy need to take care of cash-flow ?
Every family, business or organisation needs cash-flow.
The whole world needs cash to spread around the world to limit the impact of the corona virus spread.
Very technical academic economic modelling will suggest that if the economy of a country falls by 6% of Gross Domestic Product (GDP) ie the total economy shrinks by more than 6% then the death rate from the fall in economic activity is MORE than any pandemic.
The World Health Organisation - WHO - brought out their own modelling to suggest we are all going to die so should close the economy just in case.
A very quick and easily spread âcoronaâ virus has brought peoples around the world together in action.
Not least because of health services could be overwhelmed, and the core economy fails followed by the fact human society will tend to disorder.
Business needs the cash of oxygen to breath, without it they will fail and die.
Just like a family, the business needs the resources to feed the system and keep the wheels turning, and avoid a break down and loss of business, of employment, and the means to earn a living for family.
WEAKENED SOCIETY
We could look at the world wide impact of the spread of world war one infecting the world to help bring about the conditions for the Russian Soviet Revolution in 1917, as a result of a break down of the social order assisted not least by the number of WW1 Russian deaths - 3.6 million people, almost as many as the total German, French and British deaths WW1.
Over 40 million people died in WW1, the world was weaker for it. Allowing massive social change in Russia.
Similarly the infection of World War 2 allowed the conditions for the Chinese Dynasties to fall and allow a communist take over that remains today, 70 years later. The fact 20 million Chinese people died in WW2 weakened the society and provided an environment for radical social change.
If the biggest countries in the world can fail, so could any business or family unit. so the blunt question for all Expat Family and Business are:
How much cash is in your world?
How will your economy be effected?
What is the worst outcome of WWC? for your work? for your business?
OXYGEN
All successful business needs consumers to breath, to live, to survive.
WHOâs role as an international organisation is to have contingency plans for world pandemics and infections. It is their reason for being. There time has come with a disease as infectious as âSpanish Fluâ in 1918 - that was claimed to have killed 50 million people worldwide.
Corona is highly infection, and aggressive enough to kill people with no immunity. Because Corona is a new virus to humans, there is no defensive immunity present. Until we have had a winter season of âcoronaâ we wonât begin to understand how âdeadlyâ it is. Like all seasonal flu and colds it will take down the weak and vulnerable.
To look after those people we must shut the economy down.
The WHO template has been implemented with local variations around the world. The greatest fear being an overwhelm of the national health services which could lead to a break down of social order and maybe revolution.
Closing the economy starves the virus of the environment and oxygen and enables the world war to be taken against the common forces of the evil virus.
CASHFLOW
Closing the economy means Consumers canât spend. Consumers provide cash, the oxygen to keep business going. Business provides employment, paying wages the oxygen to keep family going.
Consumers are Business and Family paid as Employees.
If consumers donât spend then cash does not flow to business or employees.
The economic world is starved of oxygen. Business and families could go under. If the world economy GDP falls by 30% as a result of the economic and travel shut down, then many business all be killed off and families will go under.
Expat family and business need a new strategy in place starting today.
The Russian revolution didnât wait for the end of WW1 and the Chinese revolution carried on from WW2.
The time for Expats to make a new plan is now.
10 STEP Lockdown Checklist for Expat Business and Family
Hereâs a checklist of key questions to consider now:
How much Cash has your Family and Business got? How long can you carry on?
What costs could you cut now? Donât waste money on dead ends.
How will your Business world change ?
What Clients and Employment opportunities will exist after WWC?
How will your expat lifestyle be impacted?
How will overseas property rental and investment be impacted?
What will change for ever in our world? how do you need to adapt your business and lifestyle to a new more remote online world?
Which weak and elderly business sectors will disappear after corona? Cinema? Post? Office Meetings? Paperwork?
What is the new strategy for your business and family overseas?
How will you adapt to the new world order?
Do wait for the lockdown to finish.
Look forward to the new world of opportunity once the economic lock down ends. When it does, business will take time to build again.
Stop wasting time, consider how you can move forward with your business?
How will your overseas property investment be affected?
How can your protect you overseas property and investment assets against loss of health, death or a new world order?
ProACT take care of Family and Business Living and Working Abroad, relocating overseas and investing in offshore property across borders and down generations.
With ProACT Know How you could gain insight and expertise to help you adapt to survive and thrive in the new world of opportunity ahead.
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How is Work and Business Abroad Impacted by Coronavirus?
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