Abstract
Multinational firms (MNCs) are key players in productive (capital) globalization and international trade. Indeed, they include a parent company and subsidiaries in foreign countries through the Foreign Direct Investment (FDI). As a result, they represent one of the pillars of the international division of labor and they originate a trade intra-firm, intra-industry flows. In such a framework, they establish an international strategy over the world.
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The globalized world is currently characterized by recent trade tensions (between the United States and China or with Europe or between Japan and South Korea) and a resurgence of protectionism, namely a policy aiming to restrict imports from other countries; via tariffs on imported goods.
Extract
[...] In these circumstances of trade war, it is relevant to analyze the effects of protectionism in international trade as well as its effectiveness and weaknesses that it induces today. In a first part, we identify the theoretical determinants and foundations of protectionism, among the international trade theory. Then, we study the current trade war and its consequences by focusing on the winning and losing countries over the world. Finally, we proposed new ways to develop international trade through the WTO reform and new trade areas around the world (the New Silk Road, the ChinAfrica, the new free trade area Asia Pacific or the new NAFTA). [...]
[...] He uses the argument of globalization to explain the deindustrialization of certain areas of the United States, notably the states of the "Rust Belt" (i.e. the states of New York, Pennsylvania, Ohio, Michigan, Indiana, Illinois and Wisconsin), from which he will obtain the votes, decisive for his election. Thus, the political line that he announced during his inaugural speech (January 21, 2017) was in line with his slogan America First. Trump's protectionist argument is based on the logic that globalization, and thus Chinese exports to the US, would be a cause of unemployment in the United States. [...]
[...] Reconsideration of the international labor division12 The fragmentation of production chains of large companies around the world would accentuate this effect of collapse of trade. This observed phenomenon is called the bursting of the value chain. This configuration applies in several sectors (electronics, chemistry, computer science or the automobile) and refers to the dispersion of productive activities for the same good across several countries. Indeed, the consequences of the trade war make China less attractive to produce. For instance, given the ongoing increase in tariffs on electronic components in China, the US electronics giants (Apple, HP, Dell, Amazon, Microsoft) are looking to be less dependent on Chinese factories. [...]
[...] Protectionism in International Trade: The Importance and Effectiveness - Introduction and Detailed Plan Introduction Multinational firms (MNCs) are key players in the productive (capital) globalization and the international trade. Indeed, they include a parent company and subsidiaries in foreign countries through the Foreign Direct Investment (FDI). As a result, they represent one of the pillars of the international division of labor and they originate a trade intra-firm, intra-industry flows. In such a framework, they establish an international strategy over the world. [...]
[...] Section 3 -New ways of development of the international trade 3.1 WTO reform 3.11 Weaknesses of the WTO13 3.12 Proposals to reform the WTO14 3.2 Development of new free trade areas 3.21 The "New Silk Roads"15 The "New Silk Road" plan can provide a solution for China to cope with the current trade war. It was launched in 2013 by China for an amount of $1000 billion. It is one of the pillars of Chinese-style globalization, Chinese influence and soft power. 3.22 The ChinAfrica16 This plan of the "New Silk Roads" resumes its strategy developed over the last ten years in Africa, which is grouped under the term of ChinAfrica, and goes even further. [...]
