QUESTION 4 [25 MARKS]

Read the following excerpts from articles by Chaplot (2021) and The Washington Post (2011) and answer the questions that follow in an essay.

Balancing The Paradox Of Localisation And Globalisation In A Post-Pandemic World

"China's success in establishing manufacturing sector bases in foreign countries demonstrates its strong vision, a lesson we need to take heed.

China has been heavily referenced because it is the single largest recipient of inward global production demand for export and base for foreign manufacturing entities. While this is healthy for China, it is not so for countries that have significant portions of key manufacturing demand dependent on a single country. Rather than have all one's eggs in one basket, it would be prudent to spread key industrial production over several global hubs that provide the same production values and cost savings.

World governments need to understand this trend of localization from globalization. They need to ensure that the policies which they are making for industries in their countries take into consideration the localization aspect of certain industries.

Each country should think about local manufacturing of products, on individual merit basis of the industry and take the call because no solution is perfect - neither globalization nor localization. The key lies in striking a balance. The concept of globalization, which was earlier applied to maximize profits simply, should now stand more and more for ensuring the wellbeing of the people".

Source: Chaplot, R. (2021). Balancing the paradox of localization and globalization in a post-pandemic world. https://www.outlookindia.com/website/story/outlook-spotlight-balancing-theparadox-of-localisation-and-globalisation-in-a-post-pandemic-world/386434 (accessed 24 August 2021).

Chinese Imports and Contraband Make Bolivia's Textile Trade a Casualty of Globalisation

"Domestic manufacturing in Bolivia has been crushed by the influx of cheap foreign goods, mainly from China. Bolivian products cannot compete in the global market because of the small-scale production, the strict labor law which keeps labor costs high, and the frequent political unrest which hurt competitiveness by raising costs. The Bolivian economy is reliant on raw material extraction, and its trade deficit keeps widening. Although the government is making an effort to raise tariffs and create state-owned companies to save jobs, globalization seems to have caused more bad than good in Bolivia".

Source: The Washington Post. (2012). Chinese imports and contraband make Bolivia's textile trade a casualty of globalization. https://archive.globalpolicy.org/globalization/cases-of-globalization/51770--chinese-imports-andcontraband-make-bolivias-textile-trade-a-casualty-of-globalization.html%3Fitemid=id.html#652 (accessed 24 August 2021).

QUESTION:

Globalisation holds many benefits for South Africa. Provide a critical discussion on whether the benefits of globalization outweigh its cost (in a South African context). Is our economy in danger like that of Bolivia? What can we do to protect our industries whilst still remaining an active part of the international community? Or should we heed the warning of Chaplot (2021) and aim to balance the losses of globalization with the potential gains of localization?