Thursday 20 April 2017

Which sector tends to be the most anti-deglobalisation?

I have argued that some specific groups of people have supported the deglobalisation movement because their interests have been damaged by the globalisation process, today I want to talk about which sector or which group of people tends to be the most anti-deglobalisation. Many groups of people and organisations (including companies) support the idea of globalisation and have been benefited from the globalisation process. A significant number of companies gain larger markets and generate greater revenues and profits, individuals are also benefiting from this process when their holding shares and other wealth increase. However, the benefits gained by different sectors are different, some sectors gain more benefits than the others.

Firstly, the manufacturing sector has changed a lot over the last decades. Manufacturers have moved to countries with cheaper labour costs from countries with higher labour costs. Such change can help to produce a larger volume of goods overall, and increase the overall revenues as well. However, such changes do not improve the entire manufacturing sector everywhere, as in the areas with higher labour costs or transportation costs may lose their previous market shares. Secondly, the energy sector has also been benefited from the globalisation, as it gains more access to natural resources all around the world theoretically. However, as natural resources are often considered as national wealth and important strategic reserves, access to natural resources overseas is still relatively limited. Thirdly, the hi-tech and IT sectors have been largely benefited from globalisation. They have a unique advantage that when they gain larger markets, unlike many other sectors, they are not likely to face more volatile direct competitions immediately as their technologies are protected by copyright and some of their advanced technologies are almost too advanced to be copied by their rivals from less developed countries. Fourthly, the financial sector is also enjoying the globalisation, as these financial companies and institutions gain access to more assets and clients in general and the business activities across countries increase their business opportunities as well. However, different countries have different regulations. Moreover, when a financial firm enters a new market, there is probably already existing a powerful rival in this market. For example, when a financial institution like Goldman Sachs enters the Chinese market, of course, it gains more business, meanwhile, it has to face different regulations and competitions from the local institutions (and the local laws and regulations also favours the local institutions more).

Therefore, among the four sectors I have discussed, the high-tech sector probably is the one that is benefited the most from globalisation; therefore, it is likely to be the most anti-deglobalisation.

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