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Deglobalization: decreasing global economic interdependence


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Nations favoring domestic production, trade barriers, US (Deglobalization)

Globalization and International Organizations

Globalization

Deglobalization is the process of decreasing global economic, political, and cultural interdependence, countering the trends of globalization. It emphasizes localized or regional systems, with nations favoring domestic production, trade barriers, and self-reliance over global trade and cooperation

  1. Spiritual Globalization
  2. Cultural influence of religion in global business
  3. Religion and international product/service policies

Deglobalization frequently involves Tariffs, Non-tariff Measures, Technical Barriers to Trade, and sanctions, which reduce global trade volumes.

  1. Agreement on Technical Barriers to Trade

Deglobalization diminishes the efficiencies gained through global specialization, which can lead to lower overall productivity. For instance, requiring high-cost countries to produce goods domestically disrupts economies of scale

Deglobalization in the U.S. Semiconductor Industry (2018–2025)

The U.S. semiconductor industry exemplifies the broader trend of deglobalization, driven by escalating geopolitical tensions, national security concerns, and the supply chain disruptions highlighted during the COVID-19 pandemic. Semiconductors were traditionally produced within a highly globalized supply chain, with manufacturing concentrated in Asia, particularly Taiwan and China. By 2025, U.S. policy has pivoted decisively toward reshoring production, reducing dependence on foreign suppliers, and promoting domestic innovation.

Global trade growth slowed in 2023, with the World Trade Organization (WTO) reporting a 1.2% decline in merchandise trade volume, driven by geopolitical tensions, high inflation, and supply chain disruptions.

Drivers

  1. Economic Nationalism: Policies such as tariffs, trade disputes /War (e.g., United States-China conflicts), and protectionism to bolster domestic industries.
  2. Populism and Anti-Globalization Sentiment: Political movements championing sovereignty and local control, exemplified by Brexit.
  3. Supply Chain Disruptions: Crises like COVID-19 revealed global supply chain vulnerabilities, prompting nations to prioritize local manufacturing.
  4. Geopolitical Tensions: Escalating conflicts, such as U.S.-China decoupling or Russia-West sanctions, curtail global trade and investment.
    1. Religious differences and ethical conflicts

E-learning Courses, Diplomas (Global Business, Foreign Trade)

The subject “Deglobalization” belongs to the following Programs offered by EENI Global Business School:

Masters: International Business, Foreign Trade.

Masters in International Business and Foreign Trade (MIB AI)

Doctorate: Global Trade, Ethics, Religion & Business.

Doctorate in International Business (DIB AI) Online

Languages: Masters, Doctorate, International Business, English or Study Doctorate in International Business in French Démondialisation Study Master Doctorate in International Business in Spanish Desglobalización Masters Foreign Trade in Portuguese desglobalização.

  1. Credits of the module “Regionalization”: 2 ECTS Credits

Area of Knowledge: Globalization.

Foreign Trade (Importing, Exporting)


(c) EENI Global Business School (1995-2025)
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