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De-Globalization: a Diffused Journey from Globalization 1.0 to 2.0

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De-Globalization: a Diffused Journey from Globalization 1.0 to 2.0 Amity Journal of Management Amity Business School Vol. VII, No. 1, January-June 2019 Amity University, Madhya Pradesh (ISSN 2347 – 1832) DE-GLOBALIZATION: A DIFFUSED JOURNEY FROM GLOBALIZATION 1.0 TO 2.0 Ms. Alpa Ghosh1 ABSTRACT Thomas Friedman once stated, “The world is flat”. Localization, Colonization, Regionalization, or Globalisation are the international phenomena which cannot be stopped at will or desisted. Globalization has gone through different flavours. Globalization started as a compulsion of the west ; De-Globalization is also being taken as the compulsion of the west, There are different phases of Globalization, The advent of new world order and emergence of American dominance after the end of world war, America emerged as Superpower, created blocks, cartels to fulfill American Interest. During the height of American Diplomacy and Russian approach of Controlled Structure, it tried to create a new world order through blocks and military alliances. Globalization, Glocalization, Regionalization, Localization with Global approach, Hyper Localization and De-globalization are the buzz word for the present Global Economics. The world is going through metamorphic challenges due to international conflicting interest and national sovereignty changes in geo-economic, military, political, diplomatic spectrum and demographic variations. Changes which not only transforming the world dynamics but have also affected the fate of countries relying on Globalization or Localization approach. The world economy is affected by the process of De- Globalisation, which exhibited in three phases. The first phase initiated with Trade Protectionism. The second with increased global convergence and third associated again with de-convergence or trade dominance through Protecting measures directing towards national sovereignty. Keywords :- De- globalization, Localisation, Regionalisation, Colonisation , Glocalisation INTRODUCTION economic interest and spearheading world domination objectives through geo, Every country is adopting a different economic military and political ambition. approach to Globalisation. De-globalisation Globalisation 2.0 or Industrial revolution can be stated as a new phase of 4.0 or De-globalization 1.0 are the new Globalisation. America is creating trends of the world. Emergence of India Dollarization by using its carrot and stick and China in the world stage of policy with Gun Diplomacy. On the other International diplomacy are also some of hand, China has a policy of OBOR and the factors, which can be an insight for 2nd cheque diplomacy. India started with non- Phase of Globalization. (Globalization 2.0). aligned approach aggressively taking its neutral stance in Global diplomacy in the Phases of Globalization initial years of its emergence, shifting its 1. Emergence of America stance at present, exploiting its potential 2. Emergence of Russia market to the world economy. Smaller counties are trying to protect their own 3. Creation of Cold war Diplomacy interest and national sovereignty, whereas 4. Disintegration of Russian Block Super-powers like America and Russia are 5. Emergence of China trying to create a unipolar world of their 6. Slowdown in America and Europe own. A world which is dominated by 7. Emergence of BRIC nations western and eastern ideologies, both China 8. Emergence of Dragon and Elephant and America are trying to protect their 9. Trade restriction, and Tariff war 1 Assistant Professor, BSSS, Bhopal 10. De-globalization 31 The recent sanctions on Iran and the trade world dynamics but have also affected the war between America and China is one of fate of countries relying on Globalization the classic examples of De-globalization, approach. The process of De-globalization has gone BACKGROUND through different phases. First, it was a western term, after the end of the 2nd World We may live in a borderless world in the war, America emerged as Economic & age of Globalization. Virtually countries are Military super-power. The world was connected by technology, culture, divided into 2 spheres. Russia led the cold humanity, ideas, economic resource flows, war era, while America emerged as consumption and demands. De- Economic super-power. Globalisation has globalization, is the word which makes the gone through various phases, The First world anxious and investors and business phase was dominated by the Western world houses nervous. The Timespan between ,a phenomenon of Global dominance, 1914 and 1945 was considered to be the institutions were created , and these darkest period in global history, when it institutions were responsible for creating has gone through world wars, depression the alliances for the next 50 years, Europe and slow down, resulting in the creation of and America with their Military might & a new world order of collaboration. technological advancement dominated and Globalisation can be defined as the free plundered the economic resources of the flow of goods, services, technology, world for the next 50 Years. 1990 saw the Information, Jobs, Human Capital, Finance, disintegration of Russia and Russian block and the synchronization of world order. nations, slowdown in Europe and the Globalization has helped humanity by emergence of BRICS, the new emerging boosting the world economy, lifting economies. The economic gravity has millions of people from their extreme shifted from European nations to the east, poverty. Creating a history of economic emerging as the battleground to retain growth by reducing the manufacturing economic growth rate. cost, the convergence of wealth and capital Globalisation can be classified into 4 but in that process also deteriorated the different cycles or phases, environment, exploited the resources and environment of third world countries and 1. A world dominated by European making the population of the poor world colonies most vulnerable with unequal distribution 2. A world dominated by America and of wealth, job insecurity and stagnant Russia wages. 3. A world dominated by emerging Globalisation can be classified into 3 economies different phases, the first phase of 4. A world dominated by de-globalization, Globalization was between 1850 to 1914, trade restriction, terrorism, trade war, which was characterized by slowdown and recession industrialization, urbanization and new transport and communications Globalization, Glocalization, technologies. The second phase of Regionalization, Localization with Global Globalisation was from the year 1945 till approach, Hyper Localization and 1990 which saw the world dominated by Deglobalization are the buzz word for the western influenced globalization, present International Economics. The world Institutions and Agreements were created is going through metamorphic challenges with the objective to create a new world due to international conflicting interest, and order with Western influence. The 1990s national sovereignty changes in geo- noticed the third phase of Hyper- economic, military, political, diplomatic globalization, marked with the collapse of spectrum and demographic variations. the Soviet Union. Closed economies Changes which not only transform the 32 initiated structural changes and defined the globalization. India and China are challenges of globalization. contributing to the engine of globalization , whereas America is having a choice to According to the Economist „Richard China will never go against India because Baldwin, the meaning of Globalization has of common globalization interest, which changed. It made the process of has created a new environment of World manufacturing much easier involving the Economic map. This is also the reason why integration of multiple stages of American and European Business manufacturing, design, supply chain, establishment are taking a serious note to process resulting in manufacturing cost shift their economic bases to China and minimization. Industries are becoming India . Recent example can be Tesla Foxcom multi-locational, World trade growth is shifting base to India and China operations. growing at a rapid phase due to the A policy shift has been noticed along with massive integration of Industrialization. own rules and hidden barriers, A wave of Financial Integration has impacted the de-globalisation is taking place in west. On whole world both during slowdown as well the other hand east is going through the as growth. Capital flow and Human capital process of globalization resulting in major migration are some of the classic examples implications for companies and creating the borderless world. This has also Government. resulted in a backlash and anti-immigrant laws. Many companies across the world are reshoring their manufacturing bases, due to Global trade war has resulted in different de-globalization in the west and forms of tariff barriers, anti-dumping globalization in east. But the real problem measures, creating extreme de- will lie in a global slowdown when the globalization. There are various factors majority of companies will approach for a which guard against extreme new wave of de-globalisation and global deglobalization. It is much more difficult to restrictions on trade and commerce. The control data, skills, know-how, knowledge, world is now witnessing the gradual resulting in outsourcing opportunities and slowdown and de-acceleration, pre- investment and less protectionism. Due to emptied withdrawal of trade restriction and De- globalization resulting in slowing pace protecting national and regional interest as of liberalization and weak
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