Annals of the University of Oradea: Economic Science (Dec 2020)
THE UNPRECEDENT DISRUPTION OF THE CORONAVIRUS PANDEMIC TO THE ECONOMY AND FOREIGN TRADE OF THE BIHOR COUNTY
Abstract
The appearance of Coronavirus pandemic in the European Union has led to the state of emergency declaration in almost all countries, with a few Nordic exceptions. This state of emergency has led to the temporary closure of certain economic activities from different branches of the national economies. The consequences of this measure have led to either job losses or sending employees into technical unemployment. Short-term economic forecasts are not at all encouraging for the European economy. Being the main export market for Romanian products and services, the economic means and measures that will be taken for the European economy to recover must be taken and pursued with a close eye on macroeconomic indicators. The present paper wants to point out the negative effects of the European economic shutdown on the Bihor county companies that register foreign trade activities, mainly exports on the European markets. Based on the data provided by AJOFM, the Bihor county employment agency for the following months January, February, March, April, several factors will be analyzed that determined the Bihor county companies with foreign trade activities to temporarily suspend their activity and work contracts for their own employees. One factor analyzed follows the typology of companies that have either reduced their foreign trade activity or have completely suspended their activity, in terms of their size: micro-enterprises, small enterprises, medium-sized enterprises, large enterprises. Another factor taken into consideration follows the number of external contracts that the companies had, that can reveal the number of customers for whom they produced. This factor leads to the following one which analyzes whether there is a temporal difference in the temporary or total activity suspension between enterprises with a single foreign customer compared to those that produce for several customers. The next factor analyzed concerns the period in which companies start asking for help and registering all their employees for technical unemployment or only partially reducing their activity. Certain elements of a financial nature will also be taken into account, which could have prevented the period of temporary or total suspension of activity. Finally, conclusions will be drawn and proposals will be made to prevent such a phenomenon.
