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Microeconomic Impact of the Russia-Ukraine War

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Microeconomic Impact of the Russia-Ukraine War

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  1. MICROECONOMIC IMPACT OF THE RUSSIA-UKRAINE WAR A CASE ASSIGNMENT Presentation by Economics Help Desk

  2. Project Group A What is the Microeconomics Impact of Russia-Ukraine War? War between Russia and Ukraine, which began in 2022, has impacted the world economy. Microeconomic repercussions of the crisis cannot be ignored alongside sanctions and global supply chain disruptions. This blog article investigates the microeconomic repercussions of the war since the result will interest economics students.

  3. Project Group A Impact on Households Through economic effects, the conflict has affected Ukrainian and Russian households and others.

  4. Project Group A Price Levels and Inflation Price levels have been affected. Ukraine and Russia are major providers of wheat, maize, and energy. Disrupted shipments have raised global prices.

  5. Employment and Income This tragedy has damaged numerous buildings and left many homeless, losing their incomes. The conflict killed almost 4.8 million workers and paid employees of productive industries, according to the ILO.

  6. Impact on Firms Companies doing business with Russia and Ukraine face interruption, higher costs, and market instability.

  7. Supply Chain Disruptions Neon gas, required to make semiconductors, was scarce in vehicle manufacturing. Due to this, global manufacturing corporations have reduced output and raised costs.Due to war- related supply chain difficulties halting manufacturing.

  8. Market Structures and Competition It also changed market rivalry and industrial structures.Russia is a top producer and exporter of oil and gas. War and restrictions on Russian exports have shifted energy sectors internationally. EU nations, who are heavily reliant on Russian gas, are seeking other suppliers, increasing energy sector rivalry

  9. Project Group A Consumer Behavior Numerous nations' consumers now only spend on basics. In places with economic swings, families have had to save more out of anxiety. In Poland, a neighbouring nation significantly impacted by Ukrainian migrants, household savings climbed from 5% to 8% in the first half of the year when the crisis started

  10. Project Group A Policy Measures Adopted by Governments Some governments have imposed subsidies and price limitations to combat food and energy inflation. Subsidies and Price Controls Due to wartime inflation, central banks have changed their policies as follows. The European Central Bank (ECB) raised interest rates for the first time in over a decade to combat growing inflation. Monetary Policy

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