The Case for Globalization and Robust Global Value Chains Grows Stronger

The paper makes the case that the flows of trade, capital, and technology should be safeguarded, and that dealing with the downsides of globalization is not beyond the wit of humankind. [...] ZS The slowdown in the growth of the value of trade and its ratio to GDP following the Financial Crisis of 2009, led observers to believe that the period of the so-called hyper globalization was ending (Figure 3).13 Ever since, the determinants of globalization have been obsessively scrutinized to identify the emergence of a trend.14 Historians worry that the current globalization wave might suffe. [...] CATL and BYD the two largest Chinese manufacturers of batteries are at the forefront of technology development and accounted for 52 percent of the global market in 2023 followed by LG Energy, Panasonic, SK On and others.86 The geographic concentration of suppliers is relatively high which increases the vulnerability of the supply chain.87 THE C AS E FOR GLOBALIZ AT ION AND ROBU ST GLOBAL VALUE CHA. [...] As one pillar of the international system established in the aftermath of the Second World War, the GATT’s aim was to promote cooperation and address the underlying causes of the war in combination with the United Nations, the World Bank, and the International Monetary Fund (IMF).” The WTO in conjunction with other institutions largely lived up to their billing, but in the absence of some reengine. [...] Using technology to make process innovations, which can lessen the complexity of the supply chain, improve the gathering and analysis of information on the health of the supply chain, and redesigning of products to simplify manufacturing and cut the number of parts (EVs are a big leap in this direction) is another way of rendering GVCs more robust.