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Globalization Evolves, Not Reverses
CONVERSABLEECONOMIST ^

Posted on 05/29/2023 1:37:01 PM PDT by FarCenter

Globalization is evolving, but it doesn’t actually seem that, as one sometimes reads, that globalization is in reverse. For an overview of some key facts, Steven A. Altman and Caroline R. Bastian have produced the DHL Global Connectedness Index 2022, subtitled “An in-depth report on globalization.” It’s a just-the-facts report. Here are some takeaways:

1) The world economy is at or near a record high in exports, foreign direct investment and migration. Travel was way down in 2021, but we’ll see in the next few year if the pandemic made a permanent or temporary change.

2) The upper-right panel of the above figure shows that exports as a share of GDP have levelled off in recent years–while remaining near the all-time high. However, global flows of data and information are dramatically rising. The first figure show the annual growth of international internet traffic.

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3) In general, the distance of international flows is up over the past 20 years and the share of trade happening within regions is down–although these patterns have leveled out in the last decade or so.

4) China and the United States are clearly experiencing conflicts that have reduced their international economic ties. But the economic relationship remains quite substantial.

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5) There is considerable room for globalization to expand.

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It often seems to me that US-based discussions of globalization are built on a presumption that the US gets to play the leading role in deciding how and whether globalization will happen. This assumption was a pretty good one for the second half of the 20th century. But as other economies around the world–notably China and India–have grown dramatically, their need to drive their own development by exporting into the US market has been reduced. Instead, such countries have a greater ability to depend on selling into their own growing domestic markets–or selling to markets in the rest of the world. The US can decide that it wants to be less exposed to the gains and costs and disruptions of global markets, but many other countries around the world will not choose to follow that US decision.


TOPICS: News/Current Events
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Current smartphone production volumes are high enough to supply one to every person on earth in a decade.
1 posted on 05/29/2023 1:37:01 PM PDT by FarCenter
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To: FarCenter

Globalism + Transhumanism = Armageddon


2 posted on 05/29/2023 2:08:40 PM PDT by Nervous Tick (Truth is not hate speech.)
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To: FarCenter
Global Trade and Global Rule are not the same.

3 posted on 05/29/2023 2:08:43 PM PDT by BitWielder1 (I'd rather have Unequal Wealth than Equal Poverty.)
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To: BitWielder1

Exactly right...”Global Trade and Global Rule are not the same”


4 posted on 05/29/2023 3:39:34 PM PDT by caww (O death, when you seized my Lord, you lost your grip on me......)
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