Impact of COVID-19 on the Introduction of Digital Technologies by International Business

• Main Authors: Shkodinа Iryna V., Serdyuk Tatyana V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-10-01
• Series: Bìznes Inform
• Subjects: international business; industry 4.0; digital technologies; covid-19
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-10_0-pages-227_232.pdf

The article is aimed at analyzing the peculiarities of the introduction of digital technologies by the international business in the conditions of COVID-19. Based on the analysis of the impact of COVID-19 on the introduction of digital technologies by the international business, the authors concluded that the crisis, on the one hand, slowed down the financing of some investment projects, but, on the other hand, it stimulated the implementation of projects related to the digitalization of international business (5G, start-up factories, the Internet of Things, robotics and blockchain). There was an increase in financing for projects related to remote work, virtual cooperation instruments, mobile devices, security programs. In the long term, COVID-19 will exacerbate the problem of digital gap between both countries and businesses and among the population. It is concluded that the Big Tech’s digital innovations increase the profitability of tech giants, and flows of cheap liquidity (as a means of countering COVID-19) lead to the formation of a new bubble in the market (P/E is close to 75). After the pandemic, traditional business will resume, but the digital gap will increase and remain a major economic and social problem. To solve these problems, it is imperative to improve the State-based regulation.