Globalization and the Fallout of the COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted globalization by disrupting the course of international economic integration, reducing interpersonal interaction and communication, and lessening the significance of global governance and political interactions. This unprecedented event has altered global supply chains, MNEs’ operations and FDI, and trade patterns, and it has favored protectionist and border policies. Meanwhile, travel restrictions and social-distancing measures reduced human mobility and hindered intercultural exchanges. This study explores the short-term and long-term effects of the COVID-19 pandemic on economic globalization while also reflecting on its implications for social and political globalization. The analysis underlines that the COVID-19 pandemic has encouraged many governments to assess their strategies vis-à-vis globalization by seeking a certain equilibrium between global engagement, regional retreat, and national seclusion. Despite the adverse implications, some positive outcomes have emerged via the COVID-19-induced digital transformation and the reconfiguration of the global supply chains to improve resilience against future exogenous shocks. This pandemic exposed the shortcomings of the current global system and emphasized the necessity for a post-COVID-19 “re-designed” globalization to mitigate anti-globalization sentiments and expand benefits across countries/geo-economic regions and different segments of society.