Deglobalization

The term deglobalisation a policy stance of countries or alliances describes the distancing themselves from further integration in world markets.

In order to achieve various policy objectives, a failure to comply with WTO rules is necessary in order to promote, for example, by capital controls, protectionism for domestic industries and targeted subsidies independent economic power. As an example, it is often pointed Deglobalisierungs of supporters to the Asian tigers, which had followed this strategy and are thus risen from developing countries to industrialized countries. Business decisions should not be based on market logic, but of fairness, solidarity and security.

While these states the move to a de-globalization zugutekam especially the promotion of an independent business, another significant aspect flows today with a. Through globalization, countries are more or less forced to take a step in the direction of de-globalization. Economic and social ties are broken at the global level in order to protect their own state. This is associated with considerable costs, the effects of which are reflected in different sectors. Thus, the production figures, the employment, international trade, foreign investment and cross- border mobility to go in the wake of de-globalization sharply.

Even in the past, felt the consequences of de-globalization in a large depression, as one could see from the example of the economic crisis after the First World War, in the 1920s and 1930s.

Processes of de-globalization

One of the processes of de-globalization is trade protectionism. It includes, for example, economic policy measures such as the imposition of stimulus packages, subsidizing the private sector or the raising of import duties. The latter very often finds application in emerging and developing countries, whose domestic demand is low and where high unemployment. Due to relatively low production costs in Germany is often apart from the import. Now, several countries in the same period this strategy, this leads to a decline in world trade and thus to a decline in production and employment.

Also belongs to protectionism, economic nationalism, in which win the domestically produced goods and domestic employment, for example by subsidizing its appeal. It follows that the overseas investment are reduced, often at the expense of the foreign based companies whose trade is greatly impaired.

The financial protectionism is a process of de-globalization. It includes rescue plans for priority domestic banks, so the cash flow decreases abroad. Considering this background, the increasing currency competition, the de-globalization and its impact is tangible: The countries are trying to keep it low to make their exports more attractive the value of their currency by expansionary monetary policy. As not only a country but many countries are pursuing this monetary policy in order to stay competitive, the nominal value of currencies is indeed equal to the real value, however, decreases. This results in a massive inflation and reduction of purchasing power with them.