The Pressure of Globalisation
Summary
Pressured by rising costs of fuel, fertiliser, and animal feed, French farmers drove 350 tractors onto the streets of Paris, protesting low incomes and a trade deal between the European Union and South America. The trade deal guarantees the formation of a free-trade association of 700 million people, in which tariffs will be removed on 90 per cent of goods and on trade in services. And while the removal of trade barriers reduces the cost of production for suppliers and allows consumers to access cheaper products, these benefits may come at the cost of farmers' livelihoods. French farmers fear the deal would flood the market with cheaper imports from South America. This ultimately undercuts European producers, driving them into obsolescence.
Application
This case study well underscores the disruption brought forth by globalisation. The web of relations we have with allies will bring us benefits, but they will change the way we arrange and organise our lives too. Moreover, it exposes the tension inherent in governance: should the state pursue pragmatic decisions despite political consequences, or should it yield to its citizens' demands and suffer long-term economic inefficiencies? What would you do if you were Emmanuel Macron?