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France Deals With Crisis: Making globalization a win-win strategy

This YaleGlobal series offers ideas on how nations can optimize globalization’s benefits. In the first article, economist Pierre-Noel Giraud explains how the lack of regulations in international markets can lead to inefficiencies and uneven distribution of jobs. He argues that national policies address two categories of traded goods and services: the nomadic, which can cross borders, and the sedentary, which remain locked within domestic borders.

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Multinational companies have shifted manufacturing operations and research and development from West to East, taking advantage of low wages and huge Asian markets poised for growth. On the global trade front, countries like France feel battered, and political leaders increasingly toy with protectionism.

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This YaleGlobal series offers ideas on how nations can optimize globalization’s benefits. In the first article, economist Pierre-Noel Giraud explains how the lack of regulations in international markets can lead to inefficiencies and uneven distribution of jobs. He argues that national policies address two categories of traded goods and services: the nomadic, which can cross borders, and the sedentary, which remain locked within domestic borders.

China plant

In Europe, the process of deindustrialization has gone too far, and it’s time to reverse it. Europe should keep those segments requiring skilled human and social capital

Giraud recommends that nations engage in a win-win strategy by cooperating on exchange rates and other monetary and industrial policies. Emerging economies must develop their domestic markets, wealthy countries must keep borders open, while all countries develop and maintain skills that remain in high demand. – YaleGlobal

via France Deals With Globalization Crisis – Part I.

It is widely recognized that financial markets are imperfect and require some public regulation. But what about markets for internationally traded goods and services? To question such trade is taboo among economists. The few who dare are immediately condemned as “protectionists.” And for economists, protectionism has been the epitome of evil in international economic affairs since the 1930s.

This is strange, as from a conceptual point of view, international goods and services markets are full of what economists call market failures, including:

1. increasing returns leading to global monopolies and oligopolies;

2. economies of agglomeration leading to large concentrations of exporting industries in areas like China’s Shenzhen Special Economic Zone or a concentration of financial services like Wall Street, the City of London, Singapore;

3. massive state interventions, particularly in emerging countries whose policies can approach neo-mercantilism.

As a result, in the last three decades of globalization, the jobs producing internationally traded goods and services have been unevenly distributed: Africa is dramatically short of such jobs. Europe and the US have lost too many of them. In China, they appear to be excessively concentrated in export-oriented firms.

Dowload the full version of this paper here

Asean

ASEAN Overtakes EU to Become China’s Top Trading Partner in Q1 2020

The Association of Southeast Asian Nations (ASEAN) became China’s largest trading partner in the first three months of 2020, surpassing both the EU and the United States.

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The Association of Southeast Asian Nations (ASEAN) became China’s largest trading partner in the first three months of 2020, surpassing both the EU and the United States.

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European Union

EU donates €350 million to fight Covid-19 in ASEAN countries

EU mobilises €350 million to assist the ASEAN region in fight against the coronavirus

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As part of its plan to support partner countries around the globe, the European Union (EU) is mobilising €350 million to fight against the spread of the coronavirus and mitigate the impact of the pandemic on the ASEAN region.

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European Union

EU to revive free trade talks with Thailand

Free trade talks between Thailand and the EU started in 2013 but were put on hold after the 2014 military coup that ousted the elected government of Yingluck Shinawatra.

Olivier Languepin

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The 14th Senior Officials’ Meeting between the European Union and Thailand took place in Brussels on 16 October 2019

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