Global trade is heading toward chaos. Globalization has in part been a zero-sum game over the last 20 years, as China’s middle and upper classes have grown sharply, while Western economies have stagnated. Wealthy countries, most notably the United States and the United Kingdom, are now on the brink of abandoning free trade, as it includes both the principles and the theories behind it, because their economies cannot compete with those of China and certain other developing countries. Prevailing protectionist attitudes and policies are based on short-term thinking, and will disappoint future generations.
A “new multilateralism” can provide a way out of this impending disaster, by preserving innovation and growth, while also curbing the impact of countries that manipulate currency, disparage the environment, and violate human rights. Jacoby clearly explains how industrialized nations can compete on a basis of differentiated technology and innovation, and makes a strong case for why the West should recommit to global trade.
This session will:
a. Explain the reasons behind current populist trends around the world
b. Assess the impact of current US trade policy on the international supply chains of US companies
c. Identify potential policy and supply chain management responses