The answer is not to withdraw within our borders and erect trade barriers. History shows that retreating from global trade comes with substantial costs. One study finds that the United States’ self-imposed embargo on international shipping back in 1808 cost roughly 8% of its gross national product. [14] Instead of restricting trade, we should work towards making trade safer.
And there are signs that three shifts are taking place in world trade in response to this new global map. Three shifts in global trade The first shift is from dependence to diversification. Having learnt the lessons of the pandemic, firms are unlikely to remain dependent on relatively linear global supply chains.