18 January 2023

The essence of preserving globalization – check it out!

The essence of preserving globalization – check it out!

Recent events have shaken the global economy. Find out the essence of preserving globalization!

The events of recent years have effectively shaken the global economy. The COVID19 pandemic, followed by Russia’s aggression against Ukraine and all its consequences have led to serious economic problems. This situation has highlighted the essence of preserving globalization. We explain why it is necessary to take care of the free international flow of information, goods, capital and labour, focusing primarily on transport and trade!

What are the benefits of globalization?

Globalization is a complex phenomenon consisting mainly of economic evolution, which is also accompanied by clear changes in the social, cultural, systemic and political spheres. They lead to the gradual rapprochement and convergence of states and nations from all over the world. This process has a positive dimension, but also a negative one. It raises many security issues such as human rights, peace or the environment, among others. For example, it can lead to the loss of sovereignty of existing states, conflicts resulting from the dwindling of raw material resources, intensification of migration or ecological disasters.

The economic benefits of globalization, however, include:

  • increase in the quality of products and services and their diversification,
  • reduction of production costs,
  • economic development and stimulation of exports,
  • easier access to information, modern technologies, etc.

Why preserve globalization?

Globalization enables the free exchange of goods – data, products, services, etc. Many valuable raw materials or goods are produced only in selected regions of the world (or are produced in them much cheaper).

However, there are opinions that the glory years of globalization have already passed, and some even herald its significant weakening, i.e. the so-called deglobalization. The reasons for this state of affairs are mainly considered to be Russian aggression against Ukraine, the pandemic and the US trade war with China. Much is said about shortening supply chains, as well as nearshoring (moving workplaces to nearby countries) and reshoring (returning production to home countries).

It is already possible to observe changes in international trade due to the energy crisis, difficult geopolitical situation, etc. At the moment, however, it is difficult to assess what the future will bring – globalization may slow down, be inhibited or only take a different form.