ECONOMIC ASPECTS OF THE GLOBAL TREND

Öz

It is clear that there is an energy crisis. However, there is not a consensus on what the real roots of this energy crisis are. Simply the main reason for the recent severe increases in price fluctuations and supply side shocks is not the scarcity of world energy reserves.

The world economy has witnessed some very significant problems since 2007 such as 2007 global food crisis, 2008 global economic crisis, 2018 trade wars, 2020 covid-19 pandemics and recent 2022 Russia-Ukraine war. Interestingly all these difficulties have impacts on economies in a very similar direction in terms of increasing the self-sufficiency concerns and the protectionist sentiments. Even there arise questions such as whether a deglobalization process occurs.

After 2008 global economic crisis, many countries become much aware of the concept of the bullwhip effect. To be a participant of a value chain may result in becoming much vulnerable to economic shocks even in a much-amplified way. Due to this changing mentality world witness the slowing down of the speed of the expansion of the global value chains.