Globalization and Proctectionism

Boeing 787 alone is combined with 2.3million parts supplied from 5400 suppliers and sub-tier supplier's factory from near about 90 countries and 6 continents. Now, working for the Engines of Boeings I can say the same, alone an engine is combined of million parts procured from hundreds of different suppliers from all over the globe. The very Tail assembly in Boeing are assembled from panels that are manufactured in France, and they're assembled in Mexico using components imported from the US. When those tail assemblies are done, they're exported via truck to Canada to their primary assembly plant where they come together with thousands of other parts, like the wings and the seats and the little shades over the little windows, all coming in to become a part of a new airplane. These airplanes, before they even take their first flight, they have more stamps in their passports than a vivid traveler.

Now me, you and even Prime Minister of India and President of USA, we all are traveling in one of the Boeings. What does it all say, Globalization?

Though here we are and we have been hearing a lot about Protectionism. We heard a lot about this during the 2016 presidential election of USA. We heard about it during the Brexit debates and most recently during the French elections. We heard about it in India's Make in India initiative. In fact, it's been a really important topic being talked about around the world, and many aspiring political leaders are running on platforms positioning protectionism as a good thing. Some have blamed trade for some of the problems, for years we've been hearing about the loss of high-paying US manufacturing jobs. Many think that manufacturing is declining in the US because companies are moving their operations offshore to markets with lower-cost labor like China, Mexico, and Vietnam. Though it's not like that. Economist Michael Porter described what's going on here best. Many decades ago, he said that it's most beneficial for a company/country to focus on producing the products it can produce most efficiently and trading for the rest. That is globalization and that is Supply Chain. This way we are making more quality product in an efficient fashion. That's how Zara does it, Dell does it, Unilever and Amazon does it. Who would have thought that a high-end fashion brand is more efficient due to its Supply Chain? Zara is renowned for its ability to develop a new product and get it to stores within two weeks, while its competitors take six months.

The reality is that shared production allows us to manufacture higher quality products at lower costs. It's that simple. It allows us to get more out of the limited resources and expertise we have and at the same time benefit from lower prices. It's really important to remember that for shared production to be effective, it relies on efficient cross-border movement of raw materials, components, and finished products.

Job growth may be the central agenda of domestic politics. However, which will require a global trade, investments, and global engagement —perhaps structured, framed and sold to citizens differently to rebuild the trust and confidence. The responsibility to rebuild the trust and confidence in subject rests on the shoulders of both political and business leaders. Politics and economics are interrelated in complex ways within and across nations that makes the future evolution of globalization unpredictable. Well, we have our very famous french quote "le temps nous dirons (Only time will tell).

Sources (facts and pictures)- Boeing, GE-Aviation, Forbes, and TED