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Homework answers / question archive / 1) How do you think the outbreak of Covid-19 might become resistance to globalism? What are the arguments for nationalism? 2

1) How do you think the outbreak of Covid-19 might become resistance to globalism? What are the arguments for nationalism? 2

Economics

1) How do you think the outbreak of Covid-19 might become resistance to globalism? What are the arguments for nationalism?

2. Evaluate at least three reasons why a nation would impose restrictions on its foreign trading partners.

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Outbreak of covid 19 might pose resistance to globalism as due to the outbreak of the pandemic the economies will follow more protectionist policies and will impose restrictions on travelling across the countries and will impose restriction and barriers in trading in goods and services.As the result of pandemic producers of the goods and services are taking various steps to reduce their risk related to exposure to the long distance vulnerabilities and the factory closures and production suspension as a result of the pandemic is affecting the global supply chain.As the result of the pandemic the governments of various nations are trying to shield or protect themselves from the complex contingent contracts or trade agreements with the other nations.Inorder to decrease the speed of the disease and the virus the countries are imposing certain restrictions .The recent data shows that due to the outbreak of the pandemic there has been 30 to 40 percentage reduction in the foreign direct investments,13 to 32 percent decline in the merchandise trade 80 percentage drop in the international airline passengers in 2020.The above figures depicts that the outbreak of the pandemic has posed a resistance to the globalism.The volume of global exports has also shown a declining trend.Nationalism advocates the idea that the nations should work their own or independently rather than working together with the other nations.Some of the argument in favor or in support of the nationalism is that nationalism will prevent interdependence between the nations and will make the nations more independent and will protect the local or domestic consumers of the economy from the global competition .Nationalism promotes the idea that nations should self govern itself and the nation is only rightful source of its political power.Nationalism to some extend will help the infant industries of the economy to boom

2.The first reason why a nation should impose restrictions on its foreign trading partners is to protect the local domestic producers from the increasing global competition.The major three means through which the government imposes restrictions on trade on its foreign trading partners are subsidies,quotas ,tariffs systems etc.These methods helps the government to restrict the quantity of imports and to expand the exports of the domestic producers.Thus the first reason to impose the restriction on foreign trading partners is to protect the local domestic producers of the nation.The second reason why the government imposes restrictions on trade are to protect the infant new industries emerging in the economy from the competition.The third reason is to reduce unemployment in the economy and to provide more job opportunities to citizens residing within the economies and to protect the domestic jobs