Global Issues 11: Future of Globalization Reed Karaim In the Chapter, “Future of Globalization” Reed Karaim discusses the potential for deglobalization to occur. The recession the world experienced a few years ago led to drastic cuts in international trade. In his opinion these cuts will, alongside other reasons, create deglobalization. He expects countries will turn away from globalization by using protectionist measures and warns of the potential disaster this could mean for international relations. He highlights two viewpoints most analysts and companies have on the recession and the (potentially) resulting deglobalization. One viewpoints is that the recession is just a brief hiccup and not indicative of a major world rush to deglobalize. For these people, globalization is more than just rates of trading, so just because there is a recession it doesn’t mean the world is beginning to …show more content…
The other view is that this recession and some of the world states’ protectionist reactions are definitely indicative of the world turning its back on globalization. Still, Karaim points out that most countries have thus far avoided the protectionist policies that in some ways marred the Great Depression. The Great Depression was, in fact, the last time that deglobalization occurred. Karaim writes, “Overall, world trade fell a breathtaking 66 percent from 1929 to 1934” (285). Some attribute this to the Smoot-Hawley act. Karaim explains that the Smoot-Hawley act “increased nearly 900 different tariffs on foreign good” (284). It is said that Smoot-Hawley did not actually cause the Depression, but it certainly did exacerbate international