Exercises

Exercise: Mapping the Weaponization of Trade in the Current Phase of Globalization

Objective

This exercise aims to map the “weaponization of trade” in the context of what the referenced article calls “win-lose globalization,” characterized by the intensification of both firm-firm and state-state competition. The goal is to visualize how nation-states, acting as “strategists,” have politicized trade relations and used economic interdependences to gain relative advantages.

Citing the Article

According to the article, since the 2008 global financial crisis, globalization has slowed down, with trade and Foreign Direct Investment (FDI) becoming less dynamic. This phase of “win-lose globalization” reflects a shift where nation-states prioritize relative gains over collective global benefits, frequently using economic tools to further geopolitical objectives. The article analyzes the intensification of firm-firm and state-state competition, the politicization of international trade relations, and protectionist measures such as FDI screening and the misuse of antitrust regulations (Emerald, 2023). In this context, states weaponize economic interdependencies through trade policies, often leading to disproportionate gains for the winners while exacerbating global inequalities.

Steps to Complete the Exercise

Identify Key Nation-State Strategies

Using the content of the article, identify specific strategies that nation-states employ to weaponize trade. Examples include:
- FDI Screening: Restricting foreign investments in sensitive sectors like technology or defense.
- Trade Politicization: The use of tariffs, sanctions, and export bans to gain leverage in political or economic disputes.
- Antitrust Misuse: States may use antitrust regulation to weaken foreign competition while protecting domestic industries.
Choose Relevant Datasets

To visualize these strategies, the following datasets will be used. These datasets capture various aspects of trade weaponization, from sanctions to tariff policies:
- Global Sanctions Database (GSDB): Use this dataset to map instances where countries have imposed sanctions, visualizing the networks of sanction-imposing and target countries.
- WTO Tariff and Trade Barriers Data: Analyze how states have raised tariffs or imposed non-tariff barriers to influence foreign markets and punish rivals.
- Trade Restrictiveness Indices (TRIs): This dataset will help map the overall trade restrictiveness of countries, illustrating how protectionist policies are applied.
- International Trade Data with Sanctioned and Embargoed Goods (UN Comtrade): Track the flow of goods between countries and filter for goods impacted by trade weaponization.
- IMF Direction of Trade Statistics (DOTS): Visualize how trade relations between countries have shifted over time due to geopolitical tensions.
- Economic Coercion and Retaliation Data (PIIE): This dataset is useful for mapping instances where states have threatened or retaliated through economic measures.
- OECD Trade in Value Added (TiVA) Database: Use this data to analyze how global value chains are disrupted by trade weaponization.
Map Nation-State Actions

Use QGIS or another geospatial tool to visualize how these nation-state strategies affect global trade networks:
- Sanctions Networks: Identify countries that have imposed sanctions and map how these sanctions disrupt trade routes and supply chains.
- FDI Screening and Politicization: Highlight countries that have increased FDI restrictions and show how this impacts global investment flows.
- Trade Disputes and Tariffs: Use WTO and TRI data to visualize trade barriers and protectionist measures, highlighting key industries like technology or agriculture.
Analyze the Effects of Weaponization

Discuss how these visualizations reveal the broader impacts of trade weaponization:
- Shifting Trade Relations: Show how countries are redirecting trade flows away from traditional partners due to tariffs, sanctions, and other weaponized strategies.
- Global Value Chains: Analyze how disruptions in supply chains due to sanctions or export bans have affected the production and distribution of goods worldwide.
- Economic Disparities: Discuss how the disproportionate benefits accruing to certain nations from these strategies contribute to the broader theme of “win-lose globalization.”

Outcome

By the end of this exercise, students should have a clear visual representation of how nation-states use trade as a weapon in the current phase of globalization. This will include mapping the geopolitical strategies at play, the global supply chain disruptions, and the broader economic consequences for different regions.

# Exercises {.unnumbered} ## Exercise: Mapping the Weaponization of Trade in the Current Phase of Globalization **Objective** This exercise aims to map the "weaponization of trade" in the context of what the referenced article calls “win-lose globalization,” characterized by the intensification of both firm-firm and state-state competition. The goal is to visualize how nation-states, acting as "strategists," have politicized trade relations and used economic interdependences to gain relative advantages. **Citing the Article** According to the article, since the 2008 global financial crisis, globalization has slowed down, with trade and Foreign Direct Investment (FDI) becoming less dynamic. This phase of "win-lose globalization" reflects a shift where nation-states prioritize relative gains over collective global benefits, frequently using economic tools to further geopolitical objectives. The article analyzes the intensification of firm-firm and state-state competition, the politicization of international trade relations, and protectionist measures such as FDI screening and the misuse of antitrust regulations (Emerald, 2023). In this context, states weaponize economic interdependencies through trade policies, often leading to disproportionate gains for the winners while exacerbating global inequalities. ### Steps to Complete the Exercise 1. **Identify Key Nation-State Strategies** Using the content of the article, identify specific strategies that nation-states employ to weaponize trade. Examples include: - **FDI Screening**: Restricting foreign investments in sensitive sectors like technology or defense. - **Trade Politicization**: The use of tariffs, sanctions, and export bans to gain leverage in political or economic disputes. - **Antitrust Misuse**: States may use antitrust regulation to weaken foreign competition while protecting domestic industries. 2. **Choose Relevant Datasets** To visualize these strategies, the following datasets will be used. These datasets capture various aspects of trade weaponization, from sanctions to tariff policies: - **Global Sanctions Database (GSDB)**: Use this dataset to map instances where countries have imposed sanctions, visualizing the networks of sanction-imposing and target countries. - **WTO Tariff and Trade Barriers Data**: Analyze how states have raised tariffs or imposed non-tariff barriers to influence foreign markets and punish rivals. - **Trade Restrictiveness Indices (TRIs)**: This dataset will help map the overall trade restrictiveness of countries, illustrating how protectionist policies are applied. - **International Trade Data with Sanctioned and Embargoed Goods (UN Comtrade)**: Track the flow of goods between countries and filter for goods impacted by trade weaponization. - **IMF Direction of Trade Statistics (DOTS)**: Visualize how trade relations between countries have shifted over time due to geopolitical tensions. - **Economic Coercion and Retaliation Data (PIIE)**: This dataset is useful for mapping instances where states have threatened or retaliated through economic measures. - **OECD Trade in Value Added (TiVA) Database**: Use this data to analyze how global value chains are disrupted by trade weaponization. 3. **Map Nation-State Actions** Use QGIS or another geospatial tool to visualize how these nation-state strategies affect global trade networks: - **Sanctions Networks**: Identify countries that have imposed sanctions and map how these sanctions disrupt trade routes and supply chains. - **FDI Screening and Politicization**: Highlight countries that have increased FDI restrictions and show how this impacts global investment flows. - **Trade Disputes and Tariffs**: Use WTO and TRI data to visualize trade barriers and protectionist measures, highlighting key industries like technology or agriculture. 4. **Analyze the Effects of Weaponization** Discuss how these visualizations reveal the broader impacts of trade weaponization: - **Shifting Trade Relations**: Show how countries are redirecting trade flows away from traditional partners due to tariffs, sanctions, and other weaponized strategies. - **Global Value Chains**: Analyze how disruptions in supply chains due to sanctions or export bans have affected the production and distribution of goods worldwide. - **Economic Disparities**: Discuss how the disproportionate benefits accruing to certain nations from these strategies contribute to the broader theme of "win-lose globalization." ### Outcome By the end of this exercise, students should have a clear visual representation of how nation-states use trade as a weapon in the current phase of globalization. This will include mapping the geopolitical strategies at play, the global supply chain disruptions, and the broader economic consequences for different regions.