Will COVID-19 Kill Globalization? What You Need to Know
10 Jul 2020
Recent trade battles with China, Mexico, Canada, and Europe have reduced trade flows. Now, with the outbreak of COVID-19 severely impacting international commerce, many argue that globalization will soon be dead.
Globalization is not dying. Rather, it’s evolving, and existing trends are accelerating. American companies and workers would be wise to prepare for what’s ahead.
From 2018 to 2019, world merchandise trade decreased by 3%. But this drop is nothing compared to what’s forecast this year. Due to COVID-19, the World Trade Organization predicts global merchandise trade will decline by anywhere from 13% to 32%, depending on how rapidly countries can contain it. Before I discuss how globalization is evolving, let me first explain how we got here.