Page 196 - TrumpsEconEra_Flat

10: TRADE &

CURRENCY WARS

he world is entering into an era of slowing
Tglobal trade and an increase in protectionism.
We are witnessing something economist John Kenneth
Galbraith termed “countervailing power” where the
conflict is between large power blocs, in this case
between big business and large foreign customers.
Manufacturers have to put down deeper roots in foreign
countries to win local business.
World trade has been moribund since the financial
crises of 2007 and 2008 as protectionist measures have
intensified. Major trading
partners such as India,
Conglomerates must
China, Brazil, and Indonesia agree to buy in the
are demanding that host country.
companies invest and build
manufacturing facilities
locally, take an active role in teaching local workers
new skills and share their technological expertise with
the host country.

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