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Q 88- Is de-globalisation taking place in the world's countries? Analyze and illustrate the associated ramifications (250 words)
- Paper & Topic: GS I à Effects of Globalization on Indian Society
- The current debate over a "trade war" and "de-globalisation" arose when the United States placed 25% and 10% tariffs on steel and aluminium imports from specific nations in March 2018, citing national security and job creation as justifications.
- Economic and market observers use the word "de-globalization" to describe a trend in which various countries desire to return to economic and trade policies that prioritise their own national interests.
- Tariffs or quantitative barriers that obstruct the free movement of people, goods, and services between countries are common examples of these policies.
- The goal of all this protectionism is to defend domestic production by making imports more expensive.
- Deglobalization's Consequences:
- We still live in a very globalised world, and these protectionist actions upend the fundamental premise on which global growth is estimated and worldwide commerce is regulated by organisations like the WTO.
- When major, industrialised, and successful nations band together to create new entry barriers for goods and services, the fortunes of their many trading partners can be severely harmed.
- Then all global economic growth, inflation, and interest rate estimates go crazy.
- For example, the US economy imports a lot of low-cost manufactured items from China. If tariffs raise the cost of imports into the United States, domestic inflation might skyrocket, and US interest rates could rise even faster.
- Given that India accounts for just over 1% of the US's steel and aluminium imports, the current spate of tariffs may have little impact on India.
- However, de-globalisation in terms of service and people mobility may have an impact on both service export and the tendency of Indians travelling overseas for higher education and jobs.
- The recent global bull market is based on a worldwide recovery, and de-globalisation can soon deflate that optimism.
- What begins with things has the potential to spread to people.
- Outsiders are already subjected to extremely strict immigration rules in the United States and the United Kingdom.
- Deglobalization has the potential to stymie efforts to achieve gender equality.
- Women's ability to move in quest of better chances will be limited by restrictions on their movement.
- Reduced financial flows, which make investment capital more difficult to come by, may resurrect ancient cultural misconceptions about investing in women.
- Biases are weakened through internationalisation, but with economic fragmentation, old biases resurface.
- We must create peace and security in order to discourage nationalist and protectionist sentiments.
- It is necessary to bring emerging countries closer to global governance, indicating that they will share the responsibilities and expense of supporting capitalism and an open society in return.
- Promotion of new forms of international and regional integration that protect and allow for the flourishing of life's varied dimensions.
- Cooperation is essential for making the global economy more predictable, reducing vulnerabilities, and bolstering the free trade system.
- It is necessary to foster a culture of tolerance and understanding that allows for constructive conversation.
- Protectionism is looming over the global economy, as politicians in various parts of the world cast doubt on globalization's and free trade's benefits. Deglobalization does not reject trade or the exchange of products or services; rather, it suggests that trade not be conducted at the expense of communities, local and national economies, and the diversity of its agricultural and industrial products.