World Trade Globalization Trend Declining

Statistics from the United Nations (UNCTAD)
reported that the value of world trade in goods and
services was about US$28 trillion in 2021 and
increased in 2023 to US$32 trillion. However, trade has
declined since then, particularly from China. Reports from
The Economist and elsewhere say that the expansion of
trade is slowing due to changes in culture, government plans,
and corporate objectives. “Business bosses and investors
describe new curbs on trade, technology, capital and data.
Such barriers are rising in the name of national security and
protecting domestic workers from unfair competition.” Many
countries are establishing tariffs and other regulations to
discourage or curtail trade of particular products as well as
trade in general.
Buyers of technical products, such as software and
electronic components, purchase what they need from
China, Taiwan, India, and other countries, but those sources
are vulnerable to government controls and political changes
that could restrict exports at any time. Anyone in the U.S.
who needs assistance from a telephone provider or other
type of service frequently get help from someone who is
located in Asia. Thousands of these workers are likely to
be replaced by AI. The AI replacement will provide the
exact language accent to match the callers. The response
will be quicker and more accurate.
Governments are subsidizing their domestic
manufacturers to compete or replace foreign suppliers. For
example, the largest producers of computer chips is located
in Taiwan. The U.S. is investing in a domestic source to
provide the chips needed, although this is not likely sufficient
to replace all the product needed for the U.S. market.
Expansion of trade has improved relations among
countries. It has increased worldwide education, improved
the infrastructure of many countries and improved the living
standards of people worldwide. It is sad to realize that the
closeness of peoples will be reduced or eventually eliminated
from the continuing reduction in world trade.
Nevertheless, it may not be the end of globalization.
Trends change, and there will always be a need for buyers
knowledgeable about international trade. Make sure you
are trained in handling imports so you will be able to respond for the need of your skill.