Prepare for Globalization’s End: Barron’s

Globalization and increased connections through trade, travel, education and more has shaped the world in recent decades, reducing interest rates, costs and inflation. “The integration of several billion workers into the global economy has pushed down labor’s share of income and pushed up the share flowing to company profits,” explains Neil Shearing for Barron’s. “The latter has provided an important prop to global equity markets, but the former has contributed to the Trumpian backlash against globalization over the past couple of years.” The slowdown in globalization began before the US-China war and could be temporary in the event of technological innovation. But Shearing suggests globalization may have peaked, as new technologies have disrupted complex supply chains and countries question financial liberalization. Many nations blame globalization for tax avoidance, migration and inequality and they could place more controls on cross-border trade and financial flows. Economies could embrace greater regionalization that cooperate or compete, but countries would still have to contend with aging populations, low productivity and a lack of tools for encouraging economic growth. Resistance to connections and intensifying competition over limited resources could also trigger conflict. – YaleGlobal

Prepare for Globalization’s End: Barron’s

Globalization may have peaked, and investors may not recognize the risks of backtracking on global connections in trade, finance and more in coming years
Neil Shearing
Thursday, October 24, 2019

Read the article from Barron’s about the possible peak of globalization.

Neil Shearing is group chief economist at the independent economic research firm  Ethiopia, Turkmenistan, Mongolia, Uzbekistan, China, India, Laos, Rwanda, Ghana

Apples and oranges – or fruit? Globalization has long been credited for increased economic growth, and rankings of nations depend on assumptions, categories  and measurements (Source: Statista and KOF Index of Globalization and Global Finance Magazine)

Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved.

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.