Globalization Goes National

Global trade is slowing and a contributing factor could be that large and geographically fragmented nations focus on internal economic integration, as explained by Tyler Cowen for Bloomberg: “many nations lack integrated economic relations within their borders, and thus they could reap high gains from trade by opening up internally.” Improved communications via the internet strengthen internal trade and integration for India and China, increasing efficiency with reduced costs and exchanges on methods. Countries that lift internal barriers to trade, mobility and shipping – as well as unite among a common language for commerce – are discovering new sources of prosperity. “The more economically integrated China becomes, the more it may retreat from some kinds of global trade,” Cowen explains. “If a Chinese customer can buy a smartphone or pharmaceutical from the domestic market, she may stop looking for foreign imports.” Such integration may inspire nationalism, but in the long run improved internal integration can contribute to better cross-border relations as well. – YaleGlobal