The International Monetary Fund has warned members about the disadvantageous effects of protectionism as a response to globalization, stating it would make the world less buoyant, more unequal, and more conflicting. This was disclosed in a statement on Saturday, titled “Growing Threats to Global Trade” by the IMF
They warned that administrators in some of the world’s largest economies have made choices to stop further international integration and, in many cases, to embrace protectionist or nationalist policies.
IMF recognized the era of “hyper globalization” that took shape from the 1990s forward was connected with great economic achievement, adding that arguments against trade that emphasize the fragility of supply chains are not consistent with the evidence, they said:
“Consumers in economies open to trade gained access to an extraordinary variety of goods sourced from all over the planet at affordable prices. Smartphones, computers, and other electronics allowed people to be more productive and to enjoy more varied entertainment than previous generations had ever dreamed.”