Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 33 n° 348

Posts Tagged ‘globalisation’

Has covid-19 killed globalisation?

Posted by fidest press agency su mercoledì, 20 Maggio 2020

The open system of trade that had dominated the world economy for decades had been damaged by the financial crash and the Sino-American trade war. Now it is reeling from its third body-blow in a dozen years as lockdowns have sealed borders and disrupted commerce (see Briefing). The number of passengers at Heathrow has dropped by 97% year-on-year; Mexican car exports fell by 90% in April; 21% of transpacific container-sailings in May have been cancelled. As economies reopen, activity will recover, but don’t expect a quick return to a carefree world of unfettered movement and free trade. The pandemic will politicise travel and migration and entrench a bias towards self-reliance. This inward-looking lurch will enfeeble the recovery, leave the economy vulnerable and spread geopolitical instability.The world has had several epochs of integration, but the trading system that emerged in the 1990s went further than ever before. China became the world’s factory and borders opened to people, goods, capital and information (see Chaguan). After Lehman Brothers collapsed in 2008 most banks and some multinational firms pulled back. Trade and foreign investment stagnated relative to gdp, a process this newspaper later called slowbalisation. Then came President Donald Trump’s trade wars, which mixed worries about blue-collar jobs and China’s autocratic capitalism with a broader agenda of chauvinism and contempt for alliances. At the moment when the virus first started to spread in Wuhan last year, America’s tariff rate on imports was back to its highest level since 1993 and both America and China had begun to decouple their technology industries.Since January a new wave of disruption has spread westward from Asia. Factory, shop and office closures have caused demand to tumble and prevented suppliers from reaching customers. The damage is not universal. Food is still getting through, Apple insists it can still make iPhones and China’s exports have held up so far, buoyed by sales of medical gear. But the overall effect is savage. World goods trade may shrink by 10-30% this year. In the first ten days of May exports from South Korea, a trade powerhouse, fell by 46% year-on-year, probably the worst decline since records began in 1967.The underlying anarchy of global governance is being exposed. France and Britain have squabbled over quarantine rules, China is threatening Australia with punitive tariffs for demanding an investigation into the virus’s origins and the White House remains on the warpath about trade. Despite some instances of co-operation during the pandemic, such as the Federal Reserve’s loans to other central banks, America has been reluctant to act as the world’s leader. Chaos and division at home have damaged its prestige. China’s secrecy and bullying have confirmed that it is unwilling—and unfit—to pick up the mantle. Around the world, public opinion is shifting away from globalisation. People have been disturbed to find that their health depends on a brawl to import protective equipment and on the migrant workers who work in care homes and harvest crops.
This is just the start. Although the flow of information is largely free outside China, the movement of people, goods and capital is not. Consider people first. The Trump administration is proposing to curtail immigration further, arguing that jobs should go to Americans instead. Other countries are likely to follow. Travel is restricted, limiting the scope to find work, inspect plants and drum up orders. Some 90% of people live in countries with largely closed borders. Many governments will open up only to countries with similar health protocols: one such “travel bubble” is mooted to include Australia and New Zealand and, perhaps, Taiwan and Singapore (see article). The industry is signalling that the disruption to travel will be lasting. Airbus has cut production by a third and Emirates, a symbol of globalisation, expects no recovery until 2022.Trade will suffer as countries abandon the idea that firms and goods are treated equally regardless of where they come from. Governments and central banks are asking taxpayers to underwrite national firms through their stimulus packages, creating a huge and ongoing incentive to favour them. And the push to bring supply chains back home in the name of resilience is accelerating. On May 12th Narendra Modi, India’s prime minister, told the nation that a new era of economic self-reliance has begun. Japan’s covid-19 stimulus includes subsidies for firms that repatriate factories; European Union officials talk of “strategic autonomy” and are creating a fund to buy stakes in firms. America is urging Intel to build plants at home. Digital trade is thriving but its scale is still modest. The sales abroad of Amazon, Apple, Facebook and Microsoft are equivalent to just 1.3% of world exports.The flow of capital is also suffering, as long-term investment sinks. Chinese venture-capital investment in America dropped to $400m in the first quarter of this year, 60% below its level two years ago. Multinational firms may cut their cross-border investment by a third this year. America has just instructed its main federal pension fund to stop buying Chinese shares, and so far this year countries representing 59% of world gdp have tightened their rules on foreign investment. As governments try to pay down their new debts by taxing firms and investors, some countries may be tempted to further restrict the flow of capital across borders.Don’t be fooled that a trading system with an unstable web of national controls will be more humane or safer. Poorer countries will find it harder to catch up and, in the rich world, life will be more expensive and less free. The way to make supply chains more resilient is not to domesticate them, which concentrates risk and forfeits economies of scale, but to diversify them. Moreover, a fractured world will make solving global problems harder, including finding a vaccine and securing an economic recovery.Tragically, this logic is no longer fashionable. Those three body-blows have so wounded the open system of trade that the powerful arguments in its favour are being neglected. Wave goodbye to the greatest era of globalisation—and worry about what is going to take its place. (font: The Economist)

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Fear of TTIP, globalisation, or a middle class downgrade?

Posted by fidest press agency su mercoledì, 4 Maggio 2016

confcommercio consumiAs the first trade agreement with a strong ambition of regulatory cooperation, the scheme for a Transatlantic Trade and Investment Partnership (TTIP), can raise legitimate concerns among citizens, more to do with the maintaining of their high levels of protection than the reduction of tariffs. But any public debate on TTIP taking its cue from the negotiations’ more sensitive aspects rapidly veers towards a tendency to call international trade into question on a far broader scale, and this betrays a deeper malaise in the European and American middle classes with regard to the globalisation process. Elvire Fabry takes a stand in this Viewpoint and focusses on three main elements:
1. Beyond protection, the challenge of precaution
2. Fading support for trade in the West
3. Assessing past and new challenges of the economic integration for western middle classes (photo: no ttip)

Posted in Economia/Economy/finance/business/technology, Estero/world news | Contrassegnato da tag: , , | Leave a Comment »

Globalisation doesn’t automatically make countries better off

Posted by fidest press agency su lunedì, 2 febbraio 2015

warwick_campus_2_largeOnly a small number of countries benefited from the first wave of globalisation around 150 years ago, while the majority of nations ended up worse-off, a new study by the University of Warwick has revealed.Professor Luigi Pascali from the Centre for Competitive Advantage in the Global Economy (CAGE) led the research and says it’s proof that international trade doesn’t automatically lead to economic prosperity.In his working paper ‘The Wind of Change’ he looks at data taken from a period of the 19th century when many countries suddenly became open to international trade following the introduction of the steamship.Up until the mid-1800s the distribution of goods around the world was determined by sailing vessels which relied on global wind patterns to get from coast to coast.But the steamship dramatically changed the way the world did business and led to a marked acceleration in the buying and selling of goods on an international scale – it was the first wave of globalisation.“This is an ideal testing ground in which to observe the effects that globalisation can have on economic development – albeit only for a brief period of history,” said Prof Pascali.“I looked at a novel set of data from the time and used it to make trade predictions focusing on urbanisation rates, population densities and per-capita incomes. What I found was that the majority of nations actually lost out as a result of globalisation during this short period in history – which astonishingly goes against the widely held belief that globalisation generally has a positive impact on the world.“What also became clear from the study was that it was only a small set of core nations with inclusive political institutions that benefited from international trade, whilst the negative effect was felt by countries characterised by absolute power – which was the majority at the time.”Prof Pascali concluded: “What my study shows is that inclusive political institutions are vital to ensuring globalisation results in prosperity and history presents a warning to modern day policy-makers that economic development shouldn’t be taken for granted.”

Posted in Cronaca/News, Economia/Economy/finance/business/technology, Estero/world news | Contrassegnato da tag: , , , | Leave a Comment »

Impact of Globalisation on Company (MNE) Strategy

Posted by fidest press agency su martedì, 5 aprile 2011

Università di Pavia, 5 6 aprile 2011 – ore 9,00 Facoltà di Economia, Sala di Lettura, via S. Felice  Lectio Magistralis – Pervez N. Ghauri, King’s College, Londra “Impact of globalization on company (MNE) strategies”  è il titolo della lectio magistralis che il Prof. Pervez N. Ghauri, Direttore del Dipartimento di International Business, Marketing & Strategy  presso il King’s College di Londra, terrà a Pavia  nell’ambito del corso di laurea magistrale in lingua inglese in  International Business and Economics. La lecture si terrà presso la Sala di Lettura (ex-chiesetta) della Facoltà di Economia (via san Felice, 5) alle ore 9.00. Pervez N. Ghauri vanta un prestigioso curriculum vitae di calibro internazionale. E’ infatti uno dei maggiori esponenti nel campo dell’International Business ed una figura dell’Ateneo.accademica eminente a livello mondiale. Ha una lunga carriera come professore di International Business e Marketing e come Visiting Professor in diverse università internazionali. Ha pubblicato più di 23 libri e numerosi articoli sulle più importanti riviste del settore, ricevendo diversi premi per il  loro contributo fondamentale nel campo dell’International Business. Il Prof. Ghauri è una figura di riferimento anche al di fuori del settore accademico e della ricerca. Lavora infatti come consulente per importanti organi di governo in vari paesi europei e per numerose organizzazioni ed aziende internazionali. La lecture si inserisce tra gli eventi scientifici di rilievo nell’ambito delle celebrazioni per i 650 anni della fondazione

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