The Covid19 pandemic does not justify protectionism or deglobalization

This report analyzes the ways in which UK policy-makers ensure protectionism and deglobalization does not happen in UK. It also highlights the major five disadvantages of globalization over UK firms.

The Covid19 pandemic does
not justify protectionism or
deglobalization

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1 Analysing the ways in which the UK policy-makers assures protectionism and
deglobalization does not happen in UK.......................................................................................3
2 Analysing the five major disadvantages of the globalisation over UK firms...........................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Protectionism refers to the policy of protecting the domestic industries from the foreign
industries and deglobalization refers to the situation where the economies of different countries
does not get integrated. Both the elements works over reducing the rate of international trade. At
the time of COVID, the international trade was reduced on a high note, however, it does not
justify the protectionism and deglobalisation. This report will illustrate “How policy-makers of
UK ensures that, protectionism and deglobalizartion does not happen in UK”. Also, Major five
disadvantages of the globalisation over UK firms will be highlighted in the report.
MAIN BODY
1 Analysing the ways in which the UK policy-makers assures protectionism and deglobalization
does not happen in UK
Protectionism policy of government assures the protection of the domestic industries
from the foreign industries in UK. However, it can be beneficial for a certain period of time for
the domestic industries in UK. But, in order to grow on a high note, higher competition is
required as it open up room for development. Deglobalisarion often performs for protecting the
nation's economy from the international trade (Wijesinghe and Seminar, 2021). It often creates
no opportunities for the country. The pandemic has provided the drastic effect over the countries.
At the time of Pandemic, the exports and imports got restricted but this does not justify
protectionism. As the major focus of the government in UK was that, the country become self-
reliance as there was no opportunities for the international trade. Therefore, it was highly
important to become the self- sufficient so, the economy of UK can become self-sufficient in
dealing with the problems.
It has been found from various studies that, UK policy-makers has put a keen focus over
the economy of UK in terms of making the economy self-dependent within avoiding the
protectionism. As the globalisation provides the opportunities of growth and development.
However, it was hard at the time of pandemic that, the trade can be performed among the
different countries. Moreover, there was no motive to follow deglobalization but in pursue of
saving the people from the shook of pandemic, the steps has been taken in order to make
economy more independent. Here is the proper description that what UK Policymaker can do:
Avoiding Protectionism

“The COVID PANDEMIC was the drastic situation that has demanded for the actual
solutions rather than protectionism”.
Avoidance of Tariff and other trade barriers- Tariff refers to the tax imposed over the imports
and exports of the good and trade barriers refers to the issues that are coming in the path of
international trade. The policymakers must avoid this in order to ensure the repatriation of the
medical supply chain. As in the pandemic it there was high dependency over the other countries
in terms of dealing with the economic situation. But, there was no source to deal with the
situation by the own (Ikenson and et.al., 2020). Therefore, it is important to become the self-
sufficient so, such kind of situation can be deal without depending on other economies. It has
been found from various research that, it as easy to produce the high quality products in the UK
but, the products that are essential at the time of the pandemic such as, Mask, PPE, ventilators
and so on was hard to produce. Therefore, the avoidance of Tariff and trade barriers was needed
over the medical supply chains.
Avoidance of subsidizing of business- It has become highly important to avoiding providing
subsidies to those business which are producing those goods that are already getting produced
domestically and in abroad. At the time of pandemic, the major question as arise that why it was
hard for UK to produce the mandatory goods that are highly needed at the time of pandemic
(Triandafyllidou, 2018). The dependency over the different economy was higher for the
mandatory products. The major motive of should be like this, the mandatory products must be
produced by the country itself and for the remaining products the dependency can be made.
Therefore, it his highly mandatory to stop subsidising to those industries that are already
producing the goods that can be easily produced.
Avoiding the policies that ensures preferences to UK produced goods over the foreign goods
and services- The policymakers must put a keen focus over this in order to put a stop over the
policies that are highly concern about the goods that are produced in the UK over the goods that
are produced in the foreign countries as it is highly important to become independent at the time
of drastic situation (Tang, 2020). From the scenario of pandemic, it can clearly depict that it was
hard to produce the mandatory goods and also, there was no stock of the mandatory goods.
Therefore, it is need to focus on the goods that are mandatory and can be taken from the foreign
countries.

Avoidance of the policies that restricts exports- Export restrictions increases the prices for the
foreign customers and importers. This has been done in order to save the domestic industries.
However, it does not prove beneficial all the time. In UK, the export restrictions has been
introduced with the motive of saving domestic industries (Ferreira, 2018). But, at the time of
pandemic, the pressure was high on domestic industries in order to produce mandatory goods.
Hence, the pressure was not bearable and this leads to the drastic situation. Thus, it is highly
important that policymakers must avoid those policies that restricts the exports.
Identifying and recognizing the key benefits of the international trade
International trade refers to the exchange of goods and services among the different countries.
International trade opens up the opportunities in order to grow the country's economy on a higher
note. It is important to recognize the advantages of the international trade by the UK policymaker
so, they can make such policies that influence the international trade in the country (Kornprobst
and Paul, 2021). As a result, the country can grow on a high note. Here are the major benefits of
the international trade:
Opportunities for specialization- International trade provides the opportunities in terms of
showing the specialised elements of the country. It has been considered as that platform that
provides focus over showing the abilities to the world. Also, it helps in making domestic
companies strong so, they can deal in the competitive scenario. Therefore, it is highly important
to identify the benefit of the international trade.
Cheap imports- At the international platform the goods has been purchase from different
countries that assures the cheap imports in UK (Guimon and Narula, 2020). The consumers can
have the benefit. Also, they can enjoy the low prices for the good. As a result, the consumer
makes more purchase and increases the cash flow in economy.
Growth opportunities for the firms- In UK, there are many domestic industries that does not
faced the competition and therefore, they are not strong enough to face the competitive scenario.
Therefore, it is highly important that, policymakers provides the focus over this, so, the firm can
have the opportunities for growth (Arias and et.al., 2021). International trade provides the
benefit to the firms as they get chance to deal with the large number of consumers in all over the
world. Furthermore, it helps in increasing the productivity and efficiency of the organization in
terms of fighting in the international market.

Integration of economies- There is uneven distribution of resources in all over the world. This
can clearly depict from the situation that has arrived during the COVID. The interdependency of
the countries becomes high on those countries who have more resources to deal with this crisis.
It is important to promote the international trade to the resources that are scare in own country
can be taken from different countries. So, the stock of the resources can be available at the time
of drastic situation. Integration of economy is required.
Promote FDI- It refers to the Foreign direct investment. International trade leads to gain the
investment from the different countries (Flissak and Yankiv, 2020). As a result, the capital stock
of the company increases and helps in achieving the higher rate of growth and success. Thus,
with the help of the inn UK, there is large number of opportunities for the firms to increase their
capital stock.
2 Analysing the five major disadvantages of the globalisation over UK firms
Globalization refers the integration of world economy in order to increase the effectiveness of
the economies of different country. There is no doubt that, proliferation helps in increasing the
efficiency of the economy and provides the impact on the firms in positive manner (Cantatore,
2019). However, it has been found from various studies that, globalisation leads to provide the
negative impact on the firms. Here the major points that are efficient enough to prove
disadvantages of the globalization on UK firms.
Inequality growth of economy- It is not mandatory that there is always equal amount of growth
among the countries within adopting the concept of globalization. Countries who have more
resources leads to grow more. Thus, the unequal economic growth provides the impacts on the
organisations in UK (Flejterski, 2018). As slow and steady growth of economy creates the
situation on ineffective circulation of cash in the economy. As a result, the cycle of investing,
producing and selling gets impacted. Thus, proliferation leads to rising the inequality among the
income and wealth.
Situation of Inflation- As after the globalisation, the demand for the goods has been increased
on a high note. This leads to provide the direct impact over the prices of the good as the prices
has become so high. Furthermore, In UK, due to high prices the consumer does not prefer to buy
goods and this impacts the profit of the UK firms.

High Trade imbalance- International trade leads to create the high imbalance among the
countries. For example: Countries such as China earns high surplus due to international trade and
this puts the pressure over the other countries. This situation in UK leads to implement the
Protectionism policy and this leads to hinder the growth process of the firms. Thus, the trade
imbalance leads to pressurize the UK in terms of protecting the firms in UK (Cherunilam, 2020).
External economic shocks- There is a high threat to the UK firms due to globalization as it leads
to perform the operations over international platform. Thus, the changes and external shocks at
the international directly affects the firms in the UK. For example: Changes in the currency or
increase in taxes provides the direct impact over the firms and their working procedure and it is
hard to deal with the changes.
Race from bottom- Proliferation provides the pressure over the firm in UK in terms of becoming
more advance. Also, any firm that perform the operations at the global level has to start
everything to bottom (Rugman, 2019). As the rules and regulations of all the countries in which
the operations have to be performed needs to be identified and understand. This creates the high
burden over the firms in UK.
Above points clearly depicts that along with the advantages there are many disadvantages of the
globalisation over the UK firms. Thus, the concept of international trade is concerned with the
negative and positive aspects.
CONCLUSION
From the above report it is concluded that, protectionism and deglobalization somehow
leads to steady growth of the economy. Also, the report has clears that, during the time of
COVID, the steps that were taken does not justify the protectionism and deglobalisation. In the
report is has been highlighted that in which ways UK policymaker can make sure that the
protectionism and deglobalization does not happen. Also, the benefits of the international trade
has been covered under the report. Furthermore, the report has shown the five key disadvantages
of the international trade on UK firms as well. Globalisation is consists of the positive and
negative elements as well.

REFERENCES
Books and Journals
Arias and et.al., 2021. Deglobalization in COVID-19 Times: New Routes for Global Business.
In Globalization, Deglobalization, and New Paradigms in Business (pp. 173-188).
Palgrave Macmillan, Cham.
Cantatore, F., 2019. Publishing and the Law: Copyright and Globalisation. Publishing and
Culture, pp.41-64.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Ferreira, C., 2018. Globalisation and Economic Growth: A panel data approach.
Flejterski, S., 2018. Globalization and deglobalization–costs and benefits, winners and
losers. Logistics and Transport. 39. pp.79-86.
Flissak, K. and Yankiv, M., 2020. Economic sanctions in modern international relations: new
displays of use.
Guimon, J. and Narula, R., 2020. A happy exception: The pandemic is driving global scientific
Collaboration. Issues in Science and Technology. 22.
Ikenson and et.al., 2020. The Pandemic Does Not Justify Protectionism or Deglobalization.
Kornprobst, M. and Paul, T.V., 2021. Globalization, deglobalization and the liberal international
order. International Affairs. 97(5). pp.1305-1316.
Rugman, A.M., 2019. From globalisation to regionalism: The foreign direct investment
dimension of international finance. In Shaping a new international financial system (pp.
203-219). Routledge.
Tang, H., 2020. Globalization in crisis. Western Washington University.
Triandafyllidou, A., 2018. Globalisation and migration: An introduction. In Handbook of
migration and globalisation. Edward Elgar Publishing.
Wijesinghe, A. and Seminar, I.I.H., 2021. Trade Origins of Protectionism and Deglobalization of
Our Time.