The Shifting Dynamics of Global Trade

Insight of the Week

• Over the last few decades, on a global scale there was a movement towards increasing interconnectedness by a plethora of trade agreements.
• These trade agreements loosened up barriers and facilitated downward pricing pressures while economies looked globally in search for the low cost producer.
• In the more recent years, the geopolitical landscape has begun moving in the opposite direction while the pendulum has moved from globalization over to de-globalization.
• China is no doubt at the center of attention due to its continued geopolitical flare-ups.
• Re-routing supply chains is a slow-going affair, and we are now seeing some of the effects.