De-globalization is the process of reversing or slowing down the trend towards increased interconnectedness and interdependence between countries. There are several ways that countries can de-globalize:
Protectionist trade policies: Governments can restrict trade by imposing tariffs, quotas, and other barriers to trade. This can make imported goods more expensive and reduce the competitiveness of domestic businesses.
Restrictions on immigration: Governments can reduce the flow of people and ideas across borders by implementing visa restrictions, toughening immigration laws, and building physical barriers.
Nationalization of industries: Governments can take ownership and control of key industries, such as natural resources, energy, and transportation, to reduce their dependence on foreign companies and to promote national control over the economy.
Reduction of foreign investment: Governments can reduce the flow of foreign investment by making it more difficult for foreign companies to invest in domestic markets, or by nationalizing foreign-owned businesses.
Promotion of domestic production: Governments can encourage the production of goods and services within their own borders by providing subsidies, tax incentives, and other forms of support to domestic companies.
The most recent example we have of de-globalization is the United Kingdom, which exited the European Union in 2020. The UK changed its trade policies, restricted immigration and promoted domestic production. We’ll discuss the UK’s changes after it left the EU in another post.
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