Global Trade
“What will be the nature of global economic activities after the Covid epidemic?” This important question is being discussed among international economic institutions and economists. The lockdown in developed countries spanning months and the relief packages of trillions of dollars have created such an economic scenario. presented the report, which made any kind of economic prediction difficult, but one thing clearly emerged that after Covid, at least technology will definitely have the upper hand. This is also seen to be happening. The two countries that dominate global trade these days, one is the US and the other is China, and both of them have made technology the basis of trade. If you look at it, the trade of the post-Covid era is completely different from that opinion. Which two decades ago experts were predicting with great confidence. Today, technology-based companies dominate global stock markets and their shares are skyrocketing. Interestingly, 76 percent of these firms are from the US and China. It used to be that Europe and other emerging economies would emerge as a counter force to these countries, but this view has now almost faded away. It seems, due to Covid, the “economic bus” of these countries has been missed. The commercial superiority of America and China over the world can also be estimated from the fact that one hundred of the richest companies in the world belong to these two. Europe, which once had a share of more than 40 percent of the race, is now down to 15 percent. The rest of the world, with 77 percent of the world’s population, is far less in the fold of global economic activity. Obviously, in such a case, these two superpowers will invest in the rest of the countries through big projects and make them feel that they are being taken care of. Also, she will also emphasize that efforts are being made to maintain economic balance and eliminate inequality in the world. China has taken the initiative in this regard. The long-term investment of billions of dollars in Iran under the Belt and Road project is a great example of this. Yes, these projects were started before Covid, but they will continue even after Covid.
Once upon a time there was a lot of talk about the superiority of multinational companies and their economic role in the world. It has even been said that “these companies are like giants, getting their claws into whatever country they go to.” However, globalization has helped reduce their impact, as it is an economic partnership. It was theory. China gave birth to many large companies, including Alibaba and Huawei, which are still influencing the global economic horizon today. Both of these companies were founded on the combination of economy and technology. They pushed back the big western companies. Another comparison is worth noting. In the last twenty-five years, 9 of the companies with a capital of more than 100 billion dollars have come into being in the United States and 8 in China. There is not a single such company in Europe, in other countries. So what did you mention? The US-China trade war continues to make headlines. Economists are predicting “Doomsday”. It is said that if these two economic giants collide, there will be more destruction than world wars, but nothing like that. Air, rather the Covid epidemic gave new angles to their economic power and strategy and both of them worked in this test, while the rest of the world continued to watch. The global epidemic breathed new energy into the US and China, which Massive demonstrations are coming up. Firms from these countries have gained a clear and decisive advantage thanks to new technologies.
What kind of revolutionary change did Covid become? “If this question is put forward, it will be easier to understand the global business scenario. Covid has forced people to stay at home, increase distance between themselves, offices are closed, the practice of “work from home” It happened in general, but it was strongly encouraged. It did not happen under any assumption or conspiracy, but it all happened by itself due to the pressure of the situation. At the beginning of the Covid epidemic, when the governments, especially the United States and Europe, With billions of dollars in relief packages to keep people at home, they thought the epidemic would be contained within weeks, but as the lockdown stretched into months, second and third waves were predicted. , so big firms got an opportunity to get familiar with the fact that work that can be done in the office can be done from home with the help of technology. Obviously, working from home means that transportation Rents, electricity and other expenses are saved. However, there is a different opinion. That is, the work environment created in the office, the lack of it in the home, may reduce output. Now a part of the trade will be possible from home and this is a very important thing. Technology, especially artificial intelligence has a fundamental role in this. Therefore, if you look at the data, then universities of this kind. The demand for courses has increased.
This commercial superiority of China and the United States also raised the question that “will they be able to maintain their commercial superiority?” Also, can other countries of the world follow their model? It is certain, however, that the competition between the US and China in the economic field is going on in full force. Both are ready to leave any field open for the other. No. America has the advantage of having a small population and being ahead in technology. China still needs at least 20 years to achieve this level of technology. Trump and Biden are very different in thinking, but Their stance on China is the same. That’s why Joe Biden made it clear that the US will cooperate with China in economic matters only when it believes that it benefits it. Trump also kept saying the same thing that America suffered a lot because of China’s trade policy. He often gave the example of the trade deficit of five billion dollars, which Washington had to bear in the US-China trade. Although Biden’s statements do not have the bitterness towards China, which was a feature of the Trump era, but his trade policy does not show any softness for him. The United States still insists that China is involved in the spread of the Covid epidemic. More research should be done in Wuhan, the city of Wuhan. In the case of China and other countries, Joe Biden’s economic managers also give priority to the US market. In a way, this is also good for the emerging trend of technology, because the home market gives quick results. Yes, while foreign markets require a lot of effort, there are also issues of international diplomacy involved. In China, big firms got an opportunity to emerge during Covid, but the government wants them not to become so big that they start dictating the government. In America and Western countries, companies like Amazon and Google can develop so much that they China has an open economy, a free press, a democracy, but in China, the head of the leading company, Alibaba, is facing difficulties. The system there is such that after a certain point, government intervention is necessary. As far as other countries are concerned, it is not possible for them to compete with America and China in this field. A lot of valuable time was wasted. It also does not have giant technology companies like the US and China. Japan could have been another competitor, as it had the example of multinational companies until the 1980s, but by the end of the century, its economic power had fallen. It was no longer possible to compete with the United States, and after that China also surpassed it economically in the second decade of the new century. China used its low-wage labor, which it had access to due to its large population It has been widely used in the production of commercial goods, but at the same time it has also prepared for a second phase of technology acquisition. If we look at the priorities of China’s policy-making institutions in the past year, the acquisition of such technology is at the top. which will support trade and goods production. China is determined to maintain its economic superiority in all circumstances. For this, he will not hesitate to show any kind of diplomatic and political flexibility. In the post-Covid era, it has the infrastructure and is easily second only to the US. China also has the advantage that its domestic market is very large. For a country of 140 million people, Consumption of goods is not a big challenge in China. That is why during the height of Covid, when the movement was very limited, China resorted to its domestic consumer market and worked in it. That is why economists agree that after China’s economic recovery is the fastest in the Covid era. “Is it possible for the less developed countries to follow this American, Chinese model of technology and trade and can they become any kind of challenge to the commercial superiority of these two countries in the near future?” The short answer is that it is not possible in the next ten years. If the emerging economies of Europe, India and Southeast Asia cannot do this, how will it be possible for other countries to compete with them, whether they have the technology or not. Obviously, these countries will be able to trade only their raw materials. In other words, their trade will remain traditional, so they will not be able to make a big economic leap. They will have the same growth rate as us. will remain in the manipulation of data or at most it will be an attempt to somehow increase their exports.