Over the last few decades, globalization has created great wealth and brought millions out of poverty. Today, a combination of technology, politics, and social pressures seems to be reversing globalization. While the new technology will continue to create wealth, it will favor developed countries. The increasing regionalization of economies and differences in rates of growth will create instability and challenge international security arrangements.
The 2008 to 2009 global financial crisis slowed global trade. This led to early speculation that globalization was slowing. Yet global merchandise trade recovered relatively quickly, almost reaching pre-crisis levels by 2011. Speculation about slowing globalization ceased. But, manufacturing trade as a percentage of GDP actually flattened and then declined from 2011 to 2014. Services and financial flows followed the same pattern.
In its 2016 report, McKinsey Global Institute reported, “After 20 years of rapid growth, traditional flows of goods, services, and finance have declined relative to GDP.”
The combination of robotics, artificial intelligence, and 3D printing is moving production to automated factories. About 10 percent of all manufacturing is currently automated and this will rise to 25 percent by 2025.
To date, robotics have automated current processes but have not had a major impact on what we can make. In contrast, 3D printing will have two major impacts — mass customization and design for purpose.
The combination of robotics, artificial intelligence, and 3D Printing means “on-shoring,” returning manufacturing to the home market, is increasing rapidly.
According to analysts, more and more products will be produced locally which will steadily reduce the need for international trade in manufactured goods.
http://warontherocks.com/2016/08/the-end-of-globalization-the-international-security-implications/
The 2008 to 2009 global financial crisis slowed global trade. This led to early speculation that globalization was slowing. Yet global merchandise trade recovered relatively quickly, almost reaching pre-crisis levels by 2011. Speculation about slowing globalization ceased. But, manufacturing trade as a percentage of GDP actually flattened and then declined from 2011 to 2014. Services and financial flows followed the same pattern.
In its 2016 report, McKinsey Global Institute reported, “After 20 years of rapid growth, traditional flows of goods, services, and finance have declined relative to GDP.”
The combination of robotics, artificial intelligence, and 3D printing is moving production to automated factories. About 10 percent of all manufacturing is currently automated and this will rise to 25 percent by 2025.
To date, robotics have automated current processes but have not had a major impact on what we can make. In contrast, 3D printing will have two major impacts — mass customization and design for purpose.
The combination of robotics, artificial intelligence, and 3D Printing means “on-shoring,” returning manufacturing to the home market, is increasing rapidly.
According to analysts, more and more products will be produced locally which will steadily reduce the need for international trade in manufactured goods.
http://warontherocks.com/2016/08/the-end-of-globalization-the-international-security-implications/
