De- Globalisation Flashcards
Define De- Globalisation?
The process of decreasing/ restricting the interdependence and integration between between businesses and countries.
What are some recent factors escalating de-globalisation:
2001- Al Qaeda attack on World Trade Centres- “war on trade”
2008- Global Financial Crisis (GFC)= high risk lending undermined the whole of the worlds economy
2016- UK leaves EU in “Brexit”
2016- Donald Trumps Presidency- manifesto included promise to build a wall between the US and the Mexico border
(2017)- pulled out of the Paris Agreement
“2016 WAS THE 5TH CONSECUTIVE YEAR WHEN TRADE DID NOT GROW”
EG: “Brexit and De- Globalisation”
Brexit was seen as a symptom of de-globalisation and the dismantling of global systems
(IAN GOLDING “The Butterfly Defect= globalisation is “not sustainable” )
=reduced and changed flows of MONEY and PEOPLE and a decrease of MIGRATION into the EU
Causes of De-Globalisation:
- Rise of populist politics and a return to protectionism
- A shift towards bi-lateral (instead of MULTI-LATERAL trade) and a decline in the influence of WTO
- Returns to managed “floating exchange rates after the 2008 GFC”
- Businesses shifting away from reliance on Global Supply Chains (reshoring)
- Impacts of the 2020-2021 covid pandemic= threats to supply chains
What term did the “Economist” use to describe De-Globalisation?
“Slowbalisation”
What evidence is there that De-Globalisation is not the dominant process?
Trade liberalisation isn’t dead- seen through new trade blocs:
THE PACIFIC ALLIANCE-latin amercian trade
Define “Reshoring” ?
The practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.
What evidence is there of the COVID pandemic disrupting supply chains?
- 300 of the top 500 companies have facilities within the high-tech manufacturing industry (Hubei)
- The capital of Hubei is Wuhan= where the pandemic began= shows vulnerabilities of hyper-globalisation
