| Country/Region | June 2021 (%) | June 2024 (%) |
|---|---|---|
| United Kingdom | 2.5 | 2.0 |
| Canada | 3.1 | 2.7 |
| Australia | 3.8 | 3.8 |
| South Korea | 2.4 | 2.4 |
| France | 1.5 | 2.2 |
| Brazil | 8.3 | 4.2 |
The golden era of rapid globalisation, characterized by offshoring and just-in-time global supply chains, appears to be transitioning into an era of 'slowbalisation' or regionalisation. Following consecutive disruptions from international trade disputes, geopolitical fragmentation, and extreme weather events, multinational corporations are increasingly prioritizing supply chain resilience over pure cost-minimisation. This has led to strategies such as 'near-shoring' (bringing production closer to home markets) and 'reshoring' (repatriating manufacturing entirely).
For an open, service-oriented economy like the UK, these structural shifts present complex macroeconomic challenges. While the integration of global markets over the last three decades enabled the UK to enjoy cheap consumer imports and establish itself as a dominant exporter of high-value services (such as finance, tech, and creative industries), it also exposed the domestic economy to severe external supply-side shocks. The sudden rise in international freight costs and commodity prices post-2021 triggered domestic inflation, forcing the Bank of England to implement restrictive monetary policy, which depressed economic growth.
Proponents of reshoring argue that reducing reliance on global supply chains will stimulate domestic investment, revive manufacturing hubs in less prosperous regions, and insulate the UK from global volatility. However, critics caution that reversing globalisation will inevitably raise production costs, reduce consumer choice, and lead to retaliation from international trading partners. Moreover, the UK's highly developed service sector remains fundamentally dependent on the free flow of global capital, data, and skilled labor. The central debate continues: is deep global economic integration a source of strength that enhances living standards, or does it leave a nation dangerously vulnerable to global systemic instability?
Using the data and your economic knowledge, to what extent do you agree with the view that globalisation has been of benefit to the UK's macroeconomic performance?
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.