Some problems of the globalized economy
Hello Project Hope community, I wish you all a great day. I hope your week is going great.
Today I want to tell you about something that I have been thinking about regarding the distribution of the goods we consume (and not only food), and what I think it shows, and that it lends itself to certain problems at a global level.
Today we are living difficult times, a condition that started with the pandemic, and when we thought that this would be overcome soon, the war in Ukraine broke out due to the Russian invasion and everything got worse, and what is presumed is that it will be much worse, but in what aspect?....
Lountries are becoming more and more commercially interrelated, making them more dependent on each other. But the biggest problem occurs when a single nation is the one that supplies the rest of the world with a particular item. This gives it an extremely important condition, and if it is not able to continue contributing its share of product to the market, chaos can ensue.
This, in part, is what is happening as a result of the war in Ukraine, considering that this country is one of the major producers of cereals globally, the fact of not being able to supply is generating a wave of situations that tend to become even more complicated. One of these consequences is the price increase in this item.
Another emblematic case is that of Taiwan, which is the nation that supplies most of the chips globally, which makes the entire world dependent on it in order to have this product, which is so essential today in almost any technological product. If we project ourselves and take for granted that China finally invades Taiwan, as it seems to be what it intends, the crisis in this sector could be of epic magnitude.
Let's hope that such a thing does not happen, although everything points to it. The fact that the economy is globalized has its benefits, but also its drawbacks, and this is one of those many things that could happen.
Thank you so much for reading my post.
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Globalized economy as made countries depends on oneself heavily and a major disruption to the country depended on will cause major havoc in the economy of the rest of the control.
the example you raise with Ukraine is so spot on
I think that countries should support each other more, not become dependent, because that is what causes these difficult situations.
Greetings