Reverse Globalisation and How the Ongoing Ukraine Crisis May Shape It
International Economic Law eJournal, Vol 17, Issue 129, March 08, (2023)
10 Pages Posted: 2 Feb 2023 Last revised: 9 Mar 2023
Date Written: July 22, 2022
The war in Ukraine has unexpectedly increased geopolitical conflicts. It has disrupted the integration of the world's economies and cultures and compelled globalisation to go into reverse. This article argues how globalisation may take shape after the ongoing Ukraine Crisis. The war in Ukraine discloses the risks connected to global trade. It has started affecting foreign producers through the disruption of raw materials supply and indiscriminate economic sanctions. It has also raised global security-related risks and interruptions in the food and energy supply chains. As businesses adjust their manufacturing process to the new environment by searching for new suppliers in developing countries that can become a comparative advantage for some countries. While the global economy has become more uncertain due to the Ukraine crisis, the new suppliers would get benefit from the trade opportunities. The Western and European countries’ actions against Russia over the Ukraine crisis have made an invisible division in the global economy where China and Russia have jointly built an alternative world economy. However, the war can raise inflation globally if protectionism prevails and globalization reverses.
Keywords: Globalisation, Ukraine Crisis, Reverse Globalisation, Global Economy
JEL Classification: F13, F55, F6, F68, P48, Q01
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