ECONOMIC NATIONALISM VS. GLOBALIZATION: ANALYZING POLICY IMPACTS ON TRADE

Abstract

The ongoing debate between economic nationalism and globalization has significant implications for international trade and economic growth. Economic nationalism advocates for protectionist policies such as tariffs, subsidies, and import restrictions to shield domestic industries, while globalization promotes free trade, open markets, and economic integration. This paper critically analyzes the impact of these opposing policy approaches on trade dynamics, economic stability, and global supply chains. By examining case studies of countries that have embraced either economic nationalism or globalization, the research highlights the benefits and drawbacks of each approach. The findings suggest that while economic nationalism can safeguard local industries and employment, it may lead to trade wars and economic inefficiencies. Conversely, globalization enhances market access and economic interdependence but can expose domestic industries to foreign competition and economic vulnerabilities. The paper concludes that a balanced approach, incorporating selective protectionist measures while leveraging globalization’s benefits, may be the most effective trade policy strategy in the modern economy.