Times have changed. After the great enthusiasm over globalization, the accessibility of new products and low prices, we have also seen the negative side of globalization. And the logical reaction is the trend towards closing into national frames and preferring local products.

Globalization wallpaper

Low prices are no longer enough, consumers are also looking at the origin of goods. And governments began to buy more local products in order to support domestic production. The initiative by MEP Scholtz to offer locally grown food in schools instead of "plastic" vegetables from Dutch greenhouses has also come to great end with us. Is such a trend towards local purchases also economically meaningful?

Zerohedge Globalization
Theories almost unanimously say no. On their basis it is also possible to uncover irrationalities and losses from a national economic point of view if the state decides to protect domestic producers and forces domestic products into the market.

Global Market

But these theories have holes or have a very narrow focus on measurable parameters, such as costs, prices and quantities. However, they use completely non-life assumptions, such as either homogeneous products or differentiated products of the same quality. They do not take into account the preferences for products and services that are more domestic, do not take into account the effects on the environment in which we live and the environment itself. They do not take into account our prosperity to live in a landscaped environment, with low unemployment, a low crime rate and more satisfied neighbours. This is beyond the range of theoretical or empirical models, since these things can not be measured.

Protectionism on the march

Countries started to introduce protectionist measures against imports of foreign goods by accelerating the introduction of new technical and phytosanitary trade barriers, and lawsuits before the WTO regarding illicit subsidies and dump prices, and governments began to favor products of domestic origin in public.

According to the WTO, in 2007, its members launched 157 anti-dumping measures and in 287 by 2016

WTO 2005-2016 Measures
Between 2007 and 2016, the number of phytosanitary trade barriers among members increased from 240 to 329, and the number of technical barriers from 27 to 451. Number of new the technical obstacles triggered by 2016 have risen to over 1,400, but not all initiatives have been successful. Since 2008, 343 new requirements have been applied in public tenders for the local origin of products.