Threats to Globalisation

Globalisation as a process of deeper integration between countries is not inevitable. This short revision video outlines some of the factors causing a slowdown in the growth of world trade in goods and services. Is globalisation being replaced by regionalisation?

What are the main threats to globalisation?

Economic globalization refers to the integration of economies around the world through the flow of goods, services, capital, and labour. There are several threats to economic globalization, including:

1. Protectionism: The increasing trend of countries implementing protectionist trade policies, such as tariffs, quotas, and import bans, can limit the flow of goods and services between countries and hinder economic globalization.
2. Political instability: Political instability in countries, regions or on a global scale, such as civil war, terrorism, and regional conflicts, can disrupt trade and investment flows and negatively impact economic globalization.
3. Nationalism: The rise of nationalist movements and sentiments can lead to a decrease in international cooperation and an increase in protectionist policies, hindering economic globalization.
4. Climate change: Climate change can disrupt global trade, causing food shortages and raising the costs of goods due to extreme weather conditions.
5. Income inequality: Economic globalization can exacerbate income inequality, as it can lead to job losses and lower wages in developed countries, while wages in developing countries may remain low. This can lead to growing public discontent and calls for protectionist policies.
6. Pandemics: Outbreaks of pandemics such as COVID-19 can disrupt global trade and travel, leading to supply chain disruptions and economic downturns.
7. Cyber-attacks: The increasing dependence on technology in the global economy makes it vulnerable to cyber-attacks that can disrupt businesses, trade and financial systems.

It is important to note that these threats are not mutually exclusive, and many times they overlap and interact with each other, creating a complex and dynamic situation that can change over time.