![]() ![]() Some believe it was the North American Free Trade Agreement and China’s accession to the World Trade Organization (WTO), while others believe it was the shift in skills required to thrive in the modern economy. One can argue about the causes of this phenomenon. Already back in 2001, when I drove through the ghost towns of the once-thriving industrial areas of Pennsylvania and upstate New York, the effects were there for all to see. Industries packed up and moved to Mexico, East Asia or anywhere else where production costs were lower. ![]() However, while globalization certainly profited corporations, it had an impact on the developed world’s middle class, especially the lower-middle class. Most developing countries have seen an increase in standards of living. From an ethical perspective, globalization was thought justified because it brought opportunities to create wealth in all countries, not only those in the developed world. More openness benefited companies, which became more competitive. They were able to do so because after the collapse of the Soviet Union, there was no existential geopolitical or ideological threat on the horizon. They greatly relaxed trade and investment rules, and opened their borders to the rest of the world. For years now, North America and Western Europe have embodied the essence of globalization, shortcomings included. To answer this question, one needs to look into several situations. Globalization in the Westīut is the world firmly heading toward deglobalization, or is the trend only a reaction to the Great Recession? The spread of COVID-19, enabled by an intricate web of international connections, seems to be tipping the scales in favor of deglobalization. The European Union, which just a decade ago led the trend toward more political consolidation, is now fighting for survival. Trade and investment deals that were the hallmark of the 1990s and the 2000s are now subject to popular backlash.
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