Globalization Stalls as Trade Tensions Rise, Leaving Consumers and Companies Worse Off
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Globalization fueled world economic growth but has stalled recently due to geopolitical tensions and protectionist policies.
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The US-China trade war has reduced bilateral trade flows and changed their composition.
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Some countries like Vietnam, Taiwan, and Mexico gained from diversification of US imports away from China.
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Industrial policies may benefit some companies and workers in favored industries like semiconductors.
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Deglobalization will likely leave many consumers and companies worse off due to higher prices and less efficient supply chains.