Viruses outbreaks or what could be referred to as Pandemics could pose serious threats to national risk-management frameworks in many countries. As many national governments need to balance health security with economic and social imperatives, it becomes challenging to keep a close eye on protecting the economic sector and the international trade relationship intact from being adversely affected by the repercussions of the outbreak. Recently, the coronavirus disease 2019 (COVID-19), a disease that has evolved from an epidemic to a global pandemic, initially emerged in a densely populated manufacturing and transport hub in central China and has since spread to 208 countries and territories around the world (as of April 6, 2020), carried along by Chinese New Year celebrations, international travel, and social gatherings before all of that came to a halt. The recent outbreak of COVID-19 highlighted cracks in global trust and the pitfalls of global interdependency and is predicted to result in long-term dire consequences for communities and businesses all over the world. The spread of the dangerous virus has spooked global markets and threatened prospects for economic growth. It has also presented larger, more interdependent economies with different dilemmas, whether internally, or in their relationship with other countries. The pandemic could not have picked a worse timing than this to hit hard. Currently, trust is eroding within and between countries, as national leaderships became under pressure from growing societal unrest and economic confrontations between major powers. Systems like the European Union (EU) are feeling the heat as many European countries and members of the EU were hit hard by the disease (Spain and Italy for example), with little support from the EU in the face of the pandemic. The EU is currently under a massive cloud of uncertainty resulting from the repercussions of the Coronavirus, and fed by the recent blow from U.K. leaving the union not too long ago (a.k.a. Brexit)

Questions: 1. According to Chinas president Xi Jinping on February 23, 2020: It is unavoidable that the novel coronavirus epidemic will have a considerable impact on the economy and society. o Describe what possible impact could the COVID-19 have on the local economy of Saudi Arabia and the global economy in general.

2. According to a recent article published by the World Bank, Countries in the Middle East and North Africa face a dual shock from the COVID-19 pandemic and a collapse in oil prices. [] Among the policy options to deal with such shocks [] is that authorities should sequence their responses. MENA countries should first focus on responding to the health emergency and economic depression, postponing fiscal consolidation linked to the persistent drop in oil prices until the recovery from the pandemic is well underway. o Discuss how is the threat of the COVID-19 reshaping the focus of MENA countries.

3. Earlier on March 2020, Saudi Arabia was caught in the middle of an oil price war with Russia, triggering a major fall in the price of oil, with US oil prices falling by 34%, crude oil falling by 26%, and Brent oil falling by 24%. This war was sparked by a disagreement over proposed oil production cuts in the midst of the 201920 coronavirus pandemic. Oil prices had already fallen 30% since the start of the year due to a drop in demand. The price war is one of the major causes of the currently ongoing global stock market crash. o Describe possible scenarios arising from a continued oil price war. Who will take advantage and who will pick up the tab? Do you think the meeting of OPEC and its allies, scheduled later on this week or next week, as bringing any solutions to the ongoing price war at all?

4. As we are headed for the peak of this pandemic, things are expected to get worse. Do you see the world economy headed for a possible recession? Justify your answer.

5. Reflect on the impact of the COVID-19 on global markets and economies by referring to the concepts of international financial management that you have learned in your FIN380 course.