The Clash Between Deglobalization And Reglobalization

Hydrocracking Equipment

The follow is becoming the most recurrent tool in bulking up a nation’s capability to compete in world commerce and attract funding. However it carries a heavy value tag. In Brazil, for example, since 2003 the Federal Authorities solely allows Petrobras (the state-owned oil company) to buy oil tankers which have been constructed with not less than sixty five% of local content. As a consequence of such requirements, Petrobras finally ends up paying a premium of one hundred% on top of the average international value for any giant oil-transporting vessel. In Latin America, successful local-content insurance policies enacted by Colombia and Chile, for instance, have parted ways with traditional types of xenophobic protectionism that plagued the area during a lot of the twentieth century. Going in the opposite path, the economic translation of ‘Bolivarianism in nations like Venezuela or Bolivia for instance, basically stands for the nationalization of industrial assets, as if wealth resided in posseszing physical services, not in people’s talents or information-intensive processes.