Uwe Lohmann

Global Trade Networks

With the end of the cold war, it looked as though globalization had restrained power politics and proclaimed an increasingly peaceful world. The networks that distributed cash, data and production appeared to oppose state control. Financial conflict seemed unreasonable: attacking a rival would hurt your economy too. That is not exactly how it turned out, as US President Donald Trump tweets about forcing American organizations to leave China make clear.

We are toward the start of another “quiet war”, where the worldwide networks that should integrate nations have become a disseminated and complex combat zone.

Super powers, for example, the US and China are employing supply chains as weapons in their grand debates, while lesser countries, for example, Japan and South Korea duplicate their strategies. Organizations like FedEx, Huawei and Samsung are pawns in the combat zone or inadvertent blow-back. It is getting more difficult to distinguish the victors, and simpler to see the failures. Many years of globalization have created a reliant world. Countries will cause one set of costs when they are attacked utilizing these interconnections and another when they try to safeguard their economy by unraveling.

Given the undeniably evident fragility of the worldwide economy, punctuated by the strain it is now under, because of China-US exchange threats, maybe this time a Trans – Atlantic advancement may emerge.

Also, if not, globalization and worldwide trade including the global economy will suffer further. Be that as it may, under such a situation, what will befall the US-Dollar? What will befall on American and global wealth?