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Jeudi 18 Décembre 2014

FY360° | Making Sense of Globalization


The DHL Global Connectedness Index, now in its third edition, shows that not all flows of trade, capital, information, and people are alike.



Not so many years ago, the forward march of globalization seemed to many people to be almost a law of nature. Trade would always grow twice as fast as GDP, financial markets would continually become more integrated, foreign direct investment (FDI) would proliferate freely, and information and people would move around the world more easily. Borders and distance might cease to matter at all. But then came 2008 and the global financial crisis. It hit trade and capital flows hard, and now many question whether globalization has stalled or even gone into reverse.

Globalization did increase slightly in 2013—and, with or without that increase, will continue to have a significant impact on every company that pursues a multinational strategy. But the changes are not as simple as people might think. Globalization is not a uniform phenomenon around the world. The world’s most globally connected countries (such as the Netherlands, Singapore, Switzerland, and the United Kingdom) are many times more connected than the least (which include Burundi, Myanmar, Botswana, and Paraguay). Because the extent of global connectedness is correlated with economic growth, this discrepancy matters for both the countries and the companies that do business there.

More:
www.strategy-business.com/article/00298

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