The Implications of Ebola for International Business

Sources

Map: http://time.com/3089810/ebola-map/

The Implications of Ebola for International Business

Ebola has developed from a nearly non existant disease to a global threat within only a few months

Prognosis of Development of Ebola Outbreak

WHO: ‘Many Thousands’ of New Ebola Cases Expected in Coming Weeks  Expected exponential increase in Ebola cases in the coming weeks Number of infections to this point: ~ 5,000 Number of fatalities: ~ 2,500 Massive pressure on health facilities worsens situation (not enough hospital beds for all infected people) Current countermeasures: Border closures, flight bans, extensive quarantines But: Bans on transportation make aid deliveries way more difficult Highest risk: Airborne virus

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The Implications of Ebola for International Business

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Seoul, Sept 18 2014

Ebola has developed from a nearly non existant disease to a global threat within only a few months

Implications for International Business

Economic Consequences for Africa

High damage to mining, agriculture and service industries Markets close, farmers flee infected areas, fields are abandoned  food shortage -

Possibility of a Political Breakdown

Obama (09/2014):"This is an epidemic that is not just a threat to regional security, it’s a potential threat to global security if these countries break down, if their economies

expected to increase

Closed borders make it difficult to im- or export

break down and people panic."

Worst Case Scenario: Global Pandemic

Closed barriers all over the globe to avoid spread of infection  complete stop of international trade „Panic situation“  sudden decrease in investments and consumer spendings Worst case situation does not leave much space for strategies to avoid business losses Trade without human interaction?

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Seoul, Sept 18 2014

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Important international investors scale down operations in infected areas (e.g. China Union [iron ore])

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Evacuation of foreign...