Question

b) In recent years, there has been a trend towards deglobalisation. Identify and explain two reasons for such observation?

Answer 1

Deglobalization is a very interesting concept that has arisen nowadays.

Deglobalisation is a method in which the interdependence between various nations sees a down trend and global investments fall.

Some of the reasons for Deglobalization can be -

A) Reduce dependence on other nations -

Under deglobalisation nations try to encourage people to purchase products of their own countries that is products that are manufactured by the home country companies this also helps the local industry grow and create emploment. This is done because this helps to reduce the interdependence between balance of trade and balance of payments . Higher the imports and greater the demand from other country products make a nation to depend more on other nations.

B) Growing dislike between one other -

Heavy loss caused by certain nations may lead other nations to change their supply chains and manufacturing units from one country to other. This also creates restrictions on investments made by one country into other, Though deglobalization leads to improved costs but it has to be done due to such type of reasons.