Transformation of the System of International Economic Relations: Risks and Challenges of Deglobalization

The dynamics of contemporary world trade and cross-border flows of factors of production indicate a slowdown in globalization, but not its reversal. The change in attitudes towards globalization was rooted in the debated consequences of import competition in countries with cheap labor, and the pandemic has only strengthened the arguments against free trade and for the resilience of global supply chains. However, long-term international trade flows have not been affected by the pandemic or by the policies taken during it. Moreover, if international trade had not occurred, the supply shortages during the pandemic would have been more significant. The launch of the Special Military Operation (SMO) has raised new concerns about the vulnerability of global supply chains to new risks; trade flows have become differentiated into "friendly" and "unfriendly", and many developed countries have introduced restrictions in the form of export controls. This will have a negative impact on global growth and progress in reducing poverty, but economic globalization can still bring benefits to some countries, but everything will depend on both the concentration and volatility of international trade and on changes in trade policies. This article discusses the key evolutionary trends, factors, challenges and possible consequences of economic deglobalization, the risks of which have been widely discussed recently.