What governments should continue to focus on globalization

1. For my final assignment I wanted to look at the benefits and why countries, in particular the United
States should protect global value chains (GVCs) and create policies that increase globalization.
Globalization increases international production and decreases the cost of production because of the
forward and backwards integration of production that not only benefits developing countries but
reduces the cost of production which then benefits developed countries.
Currently there is a problem with many countries moving forward with nationalization that is hurting
globalization and increase global trade. Countries like the United States are focusing on internalizing
development of products and moving towards more domestically manufacture goods, decreasing
products that are produced internationally. This can cause many problems not only for developing
countries but also developed countries. Developing countries lose access to job which benefits their
livelihood by increasing income, access to jobs for women and overall because of this hurts the
wellbeing of the household. Nationalism will not only hurt developing countries but for developed
countries it will have an impact on the labor force currently producing products in low manufacturing or
medium manufacturing economies labor costs are a lot cheaper reducing the price of production of
goods however if countries begin producing products in country then the cost of the goods will increase
because the cost of Labor is a higher, nationalism will increase the price of goods and lead to increased
automation and reduction of jobs overtime. In developed countries such as Nordic countries many jobs
have been automized because income levels are so high and by adopting artificial intelligence it has
reduced the cost of production of goods and only left jobs for managerial and oversight of the
production line. Many believe that nationalizing production will increase job market and increase access
to better drops however in many developed countries income levels are so high that it isn't beneficial to
bring jobs back in country and it's more beneficial to automize an adopt artificial intelligence to reduce
production costs and increase productivity. Artificial intelligence reduces the cost of production because
most jobs do not require human oversight however those jobs require more skilled workers that are
highly trained reducing menial jobs for people in developed countries and reducing the overall labor
force.
By looking at GVC's you can see that over the last two centuries there has been a shift in the dominant
powers and the 19th century The United Kingdom was the dominant economic and industrial power and
they pushed economies to globalize and adopt trade policies that reduced tariffs and taxes to provide
them with access to goods in other countries. During this. It was referred to as pax Britanica period, the
United Kingdom's dominated the global trade market and pushed developing countries to open up and
liberalize trade policies this really benefited the UK and increase globalization. You United Kingdom
wanted increased globalization because it increased their access to improved goods and decrease the
overall cost of production. These benefits really increased The United kingdom's overall GDP and
decreased their cost of production of goods because of the decrease in labor and material costs.
However, this period only lasted until the Great Depression once the Great Depression Began the United
Kingdom moved towards nationalized policies to protect their government and their people from the
overall impact in the global economy. By moving to nationalist policies and moving away from
globalization The United Kingdom saw a dramatic decrease their share of world trade from 15% prior to
the Great Depression to below 10% during and after the Great Depression. What's the United kingdom's
share of global trade began reducing the United States began becoming a global power moving from pax
Britannica to pax Americana, during this. In the 20th century the United States took over as the great
global international trade power. Since taking over as the global trade leader, The United States has

2. increased their global value chains and their global production reducing their costs love goods imported
however in the recent past since the Great Recession The United States has decreased their level of
international trade and has increased their focus on national production and nationalism. This approach
proved to be the wrong move for the United Kingdom and is showing that it is also the wrong move for
the United States. In the recent past the United States has entered into a trade war with China and this
trade war could have a drastic impact on the United States and its global impact. If the United States
continues focusing on nationalism and national production of goods it will reduce its ability to produce
goods efficiently this will not only impact the United States by increasing its costs of goods but it will
also reduce The United States is dominant in the global trade market and as we have seen China will
begin to take over as the great global trade leader in the coming years.
Overall, I recommend the United States reduce its nationalist policies and continue to focus on global
value chains to increase its production minimize its costs of goods and continue its dominance in the
global trade center. Not only will this benefit the United States economy, but it will also benefit the
developing countries that rely on the United States for their production of goods.