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Reverse globalization
From CopperWiki
A reversal in the process of globalization is leading to serious protectionism in countries across the world. Increasingly policy makers are coming under pressure to steer their nation's governments counter to the ideals of globalization. Jtb9GE <a href="http://batbupvbwpio.com/">batbupvbwpio</a>, [url=http://iwtlvnaaevkd.com/]iwtlvnaaevkd[/url], [link=http://axgsoawcrmos.com/]axgsoawcrmos[/link], http://xojhtwefowzv.com/
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[edit] All about reverse globalization
Globalization is the approach that best gives equal benefits to the entire world. Protectionism only leads to cooler foreign relations, poorer global citizens, and high inflation. But as the cost of shipping continues to soar along with fuel prices, homegrown manufacturing jobs in the world's bigger ecomomies are making a comeback after decades of decline. The cost of oil and shipping leads some companies to bring jobs back home.
[edit] Signs of de-globalization
- Global free trade is in trouble because of the failure of the Cancun WTO meeting and the proliferation of bilateral and regional trade deals. Industrialized nations are not only adopting protectionist attitudes but there’s also the feeling of “West against the rest”
- Major powers are pulling apart as is evident over debates over the war in Iraq
- The decline of shared values is also evident in the failure by the US and other countries to bridge differences on treaties covering everything from land mines and arms control to global warming and the International Criminal Court.
- Data showing high consumer and government debt, stubborn unemployment, growing deficits and other problems highlight underlying economic weaknesses that leave the world vulnerable to recessions, panics, and a backlash against globalization.
These developments reveal a trend away from consensus and teamwork—the drift is toward nationalism and protectionism rather than global institutions and open markets.
[edit] Effects of reverse globalization
Reversal of globalization will result in proliferating tariffs, duties, exchange controls, foreign ownership limits, and other restrictions which would curtail the ability to buy, sell, and invest abroad.
Key industries in some countries will be might be nationalized. Mounting international tensions could inhibit the movement of goods and raise companies’ security and insurance costs. Moving key people from one country to another would be difficult in some cases. De-globalization would make the following kinds of commercial pursuits more difficult:
- Operating factories, mines, oil fields, gas fields, software development centers, or other production facilities abroad.
- Importing and exporting raw materials, components, or finished goods.
- Outsourcing to foreign firms the performance of professional and administrative functions such as operating call centers and data processing installations, and conducting research.
- Opening restaurants, retail stores, financial institutions, professional offices, and other service establishments in foreign markets.
- Buying or creating ventures involving critical infrastructure abroad, such as telecommunications networks, broadcast stations, health care facilities, and utilities.
- Selling recorded music, movies, videogames, computer software, and other intellectual property that is subject to unauthorized reproduction and distribution.
- Supplying foreign governments and government contractors with goods and services related to national security.
- Providing products and services relating to international transportation.
- Tapping foreign capital markets.
[edit] 90 degrees
One of the primary reasons why globalization is reversible is that higher energy prices are impacting transport costs at an unprecedented rate. So much so, that the cost of moving goods, not the cost of tariffs, is the largest barrier to global trade today. In fact, in tariff-equivalent terms, the explosion in global transport costs has effectively offset all the trade liberalization efforts of the last three decades. Not only does this suggest a major slowdown in the growth of world trade, but also a fundamental realignment in trade patterns. [1]
