Calculus of globalization becomes more complicated with high price of oil; Shipping cost is on average the equivalent of a 9% tariff on trade
Aug 19th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The calculus of globalization has become more complicated as the high price of oil has dramatically increased the cost of moving goods around the globe, posing a major threat to price stability and overseas manufacturing, finds a new report from CIBC World Markets. Shipping cost is on average the equivalent of a 9 percent tariff on trade. “The cost of moving goods, not the cost of tariffs, is the largest barrier to global trade today,” the report concluded, and as a result “has effectively offset all the trade liberalization efforts of the last three decades.”