The Strait of Hormuz, crucial for global commerce, is transforming into a toll highway where ships are reportedly asked to pay “safe-passage” fees amidst heightened tensions in U.S.–Iran relations. These payments, likened to protection money, compromise the principle of freedom of navigation and may normalise coercive practices in international trade.
Tag Archives: mercantilism
Chinese Brands: A Catalyst for Economic Growth
The Economist’s article discusses how Chinese brands are advancing beyond low-cost manufacturing, fostering innovation and competition globally. Protectionist measures in North America and Europe may inhibit domestic growth and innovation. Instead of exclusion, strategic engagement is suggested to enhance competitiveness and adapt to evolving trade dynamics, recognizing the need for collaboration and resilience.
Trump and Mercantilism: Implications for International Business
Mercantilism, an economic theory prevalent from the 16th to 18th centuries, has seen a resurgence in the 21st century, particularly through U.S. trade policies. Trump’s “America First” strategy seeks to bolster domestic manufacturing and resource control, aligning with classical mercantilist principles. However, these approaches risk isolating the U.S. in a global economy increasingly shifting towards regional trade and diversity. Businesses must adapt by diversifying partnerships, leveraging trade agreements, and enhancing supply chain resilience to mitigate risks and seize new opportunities in a changing landscape.
PGTS Inc. 