Evolution of world trade wars: the historical aspect

Management and Economics Research Journal, 2019

In the 21 st century, trade has been recognized as the most significant vehicle for accelerating the pace of growth and development for a country, irrespective of developed or developing in particular, and global economy, in general. Accordingly, trade disputes and wars that have come out as the biggest issues for the global trading system are a matter of great concern. This is because the very purpose of creating World Trade Organization (WTO) is being defeated, that is "promotion of multilateral trading system". Trade disputes and wars that are being combined with the "build up in leverage and higher asset unit values" may have emerged out as a deterrent to world trade and the same in turn may affect the existing global trading system to a greater extent. It has become sin-quo-non to have minimum possible trade wars among the major trading economies across the world. In the past decade, we have already seen that two contributory factors, namely leverage and asset prices, which were responsible for the 2008 crisis. The same situation has started coming up. Hence, the global leaders must pay attention on both the issues on war footing. Otherwise, the situation may become worse and out of control. It is an undisputed fact that world growth has been strong and sound during the last few years. However, on the one hand, the matter of concern for global players is how long it will remain strong and sound; on the other side, the persisting elevated asset price could be justified on the basis of strong and sound economic growth in general, world trade in particular, across the world.

2007

Capitalist production, trade, and market relations are driving forces of contemporary globalization. While globalization cannot be reduced to its economic dimension as some economists have been prone to do, there is no doubt about the central importance of exchange and production in the extension of social relations across world-space. Globalizing exchange goes back long before the emergence of modern capitalism. Long-distance market relations drew connections between peoples along lines of trade such as the Silk Route between Europe and China; lines that stretched for thousands of miles. In the contemporary period, layers of modern and postmodern capitalism have taken these interconnections to new levels of integration and intensity. The process remains uneven, but notwithstanding the continuing importance of national and regional economies today, global capitalism is undoubtedly the dominant framework of economics in the world. There are many debates about what this means, but across the political spectrum ‘capitalism’ has become the taken-for-granted way of naming the economic pattern that weaves together the current dominant modes of production and exchange. Ideas and practices as diverse as consumerism, entertainment, liberalism, cosmopolitanism, tourism and sport are now so bound up with processes of globalizing production and exchange that it is difficult to extricate broader social relations from their grip. It seems that everything can now be conceived of in terms of goods and services that can be sold (commodification) or processes that are organized to offer a return on investment (capital accumulation). Each of these processes has spread across the globe. This volume, as the first in a set of four volumes on economic globalization, begins with the emergence of a globalizing market and subsequently the consolidation of what some writers have called the modern capitalist ‘world system’. It examines the relationship between global trade, commodity relations and economic development across the course of traditional and modern history, and into the present. Along the way, the volume covers the major radical approaches to global markets—world systems theory, Marxism, and more mainstream approaches to economic globalization including Keynesianism and neoliberalism. Later volumes take up the issues of global finance systems, global economic institutions, the globalization of labour, respectively.

ABSTRACT This paper attempts to highlight some of the misconceptions and unfairness in the current model for global trading, economics and the current form of overly corporate led globalization. Following a period of economic boom due to international trade , a financial bubble –global in scope-burst,even causing some of the world’s largest financial organizations have collapsed. With resulting recession, many governments of the wealthiest nations of the world have resorted to extensive bail- out and rescue packages for the remaining large banks and financial institutions while imposing harsh austerity measures on themselves. Some of the bail-outs had also led to charges of hypocrisy due to apparent “socializing the cost while privatizing the profits.” Furthermore, the institutions being rescued and typically the once which got the world into this trouble in the first place. For smaller businesses and poorer people , such options for bail –outs and rescue are rarely available when they find themselves in crisis. Global economic governance stands for the institutions, regulations and mechanisms that manage increasing inter dependency of global challenges of the world economy andforms the foundations of stable economic developments. However , global economic governance remains largely mired in “silo thinking”. It is broken down too distinctly into different subject areas, with political decisions in one area also affecting the other. For these close interrelations, handling of trade finance and the parallel lack of coordinated and coherent global economic governance are very important examples. Trade finance stands at the interface between trade policy and financial market regulation. Despite this, the relevant institutions, in particular the world trade organization ( WTO) and the bank for international settlements donot liaise with one another to an adequate extent.

The world has seen two globalization booms over the past two centuries, and one bust. The first global century ended with World War I and the second started at the end of World War II, while the years in between were ones of anti-global backlash. This lecture reports what we know about the winners and losers during the two global centuries, including aspects almost always ignored in modern debate -how prices of consumption goods on the expenditure side are affected, and how the economic position of the poor is influenced. It also reports two responses of the winners to the losers' complaints. Some concessions to the losers took the form of anti-global policy manifested by immigration restriction in the high-wage countries and trade restriction pretty much everywhere.

2007

Does the contemporary dominance of haut finance, or ‘mighty finance’, constitute a new era of globalizing economics? Or is it just another phase of globalization and not much different from the processes of financial exchange evident at the end of the nineteenth century? These questions are dramatic but unhelpful. Such dichotomous ways of understanding globalizing finance have been behind a series of debates in the globalization literature. They have tended to disallow the possibility of talking about both long-run processes and significant (qualitative) changes in the contemporary period of intensifying globalization. This volume presents many different takes on these central questions of globalizing finance. Nevertheless, the framing consideration of the volume is that we need to be able to say, without being contradictory, that at one level we can see long-term continuities in the mode of exchange; at another level there are new formations of practice that in their emerging dominance have reconstituted the face of contemporary global finance. Financial exchange, as an expression of the changing modes of exchange across history began as far back as the development of coinage in antiquity. It has undergone significant and momentous shifts in its dominant forms of practice. However, these have tended to layer across prior formations rather than simply replace them. For example, derivatives exchange as one of the driving globalizing modalities of the last decade, and which involves hedging against fluctuations in the value of a currency, overlays the agricultural futures markets of the nineteenth century when the producers of such basics as wool and wheat hedged against the possibility that when their produce went to market the price may have fallen. In other words, the emerging dominance of derivatives might be said to represent a further aspect of what Karl Polanyi calls the ‘Great Transformation’ of international financial exchange, even as it has it historical antecedents in dealing with the long-run practical problems of a time-delay between seeding a crop and selling it in an international market.

ENSEMBLE SPECIAL Issue 1 http://www.ensembledrms.in/wp-content/uploads/2022/11/Article_7.pdf, 2021

Globalization in the literal sense means those activities which go beyond the national boundaries of sovereign nations. These activities may be related to any social spheres like economic, political, social or legal. Economic globalisation denotes the transnational activities of trade which includes imports and exports. Social globalisation denotes the free movement of technology and social values from one sovereign nation to other. It also includes the uniformity in cultural values and free movement of citizens of one nation to other. Globalisation in political matters would include the consensus of different nations regarding mutual issues like climate change, United Nations peace keeping etc. etc. Legal globalisation means establishment of different legal systems which regulate and govern all the sovereign nations uniformly like WTO, ICC etc. etc.Over the past three decades the concept of globalisation has so flourished that it has now replaced the concept of Nationalization. The author would like to unfold the different dimensions of economic globalisation and role of World trade organisation in bridging the inequalities which were faced by sovereign nations.In this context, globalisation is understood purely in economic terms, i.e., growing trade interdependence and investment integration. The strong globalisation thesis claims that national governments' macroeconomic and industrial policies can only distort and obstruct the rational allocation of resources by business decisions and consumer choices, which are now decided on a global scale. To succeed, all corporate actors must abandon their domestically oriented bureaucratic management style, as well as the government involvement that comes with it, and join the new world of open global marketing and production networks. National plans and policy action are likely to distort international markets, which offer coordinating and governing mechanisms in and of themselves. The age of successful national economies, as well as the state policies that accompanied them, has passed. The market will, and should, make the final decision.