​This pandemic and virus have affected not only individuals but also the operating of law firms. Many sectors such as property has experienced reduced workload, creating an impact on number of clients coming in as well as the success rate in terms of profit earned. However other sectors may be booming throughout the lockdown, including the family sector (due to increased domestic matters) and corporate.

​IMPACT:

• The lockdown has caused a recession – similar to the 2008 recession. It has affected recruitment due to loss of employment, and more businesses are closing down due to no profits being made.

CAUSE OF THE RECESSION:

• COVID-19

• Cuts enacted by the government - reducing funding in NHS

• Culture - Response to COVID has been too extreme

RESULT OF COVID:

• Although COVID brought many issues regarding less customers walking into law firms etc, there have been many opportunities that have opened from it. For example, the increase use of video conferencing platforms, Artificial Intelligence (to track COVID infections), virtual vacation schemes and internships, increase in Bitcoin. Therefore it can be agreed that COVID has opened up more use of platforms that may have not been used as frequently as prior COVID. 

FUTURE:

• The risk that may be caused to law firms is that certain sectors may not be performing as well as other industries -so it is important for firms to be focusing more on the sector that is gaining more clients and profits.

• In 2018 China and America both placed importing trade tariffs (25%) on a number of goods that were being imported from each other’s country – the aim for this was to affect one another’s economy.  

• US soybean market - the China markets take about 60% of their output. This grew in the 1980s, as China (who are enthusiastic consumers of pigs) were convinced they could fatten their pigs quickly if they used the US soybeans = Went from 30,000 tonnes of soybeans in 1982 to up to 95million tonnes in 2017 being exported from US to China. 

• The effect of the tariffs was immediate. With the 25% import tarriff on the US soybeans, the cost also had risen.            

IMPACT:

• US – the tariff was placed after the farmers had planted the soybeans (they thought they would have a guaranteed market from China as they previously did) – they had difficulty in exporting the beans – the price dropped due to less demand (as China bought less due to the price). There were exports to the EU as it was fairly cheap for countries like Portugal. So ultimately US had more quantities of soybean that was not being sold due to the tariff they placed on China, as well as less demand for it.

• China – They used the beans to feed the pigs. There was a regulation stating that they had to feed the pigs 20% protein. China started to look into other markets for soybean (mainly south America). They also changed regulations in terms of what they had to feed the pigs – they dropped the 20% to 12%. There was also an outbreak of swine flu which resulted in them being less reliant on soybeans.                 

SO ULTIMATELY:

• It will be detrimental to American trade in the long term as Americans would be competing with more efficient trading competitors (South America)       

FUTURE:

• Americans and Chinese are talking about a deal that may include taking the tariff off. The number of Chinese exports to US has reached its highest, however America exports to china (soybeans and oil) has lowered considerably – Loss to US. There may be a relevant return to the previous situations.

• Under the "phase one" deal signed in January, China pledged to boost US imports. They also stated they will tackle additional issues in a second “phase two” deal but this is not expected any time soon.

Want to practice? Pick a topic or current affair that interests you. Describe it and relate it back to how it affected/ may affect the legal industry, and what law firms can do to tackle this. What risks may occur?

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Have a go yourself and send it to us: getpracticeready@gmail.com