The State of Globalization in 2019 and What It Means for Strategists
By Pankaj Ghemawat and Steven A. Altman
So, the biggest winners regardless of whether globalization goes up or down, are likely to be companies that embrace globalization’s complexity rather than purely local or global visions of their business environments.
In 2017, strong growth across most of the world propelled the DHL Global Connectedness Index to a record high. The proportions of trade, capital, information, and people flows crossing national borders all increased significantly. The last time that happened was 2007.
In 2018, however, major policy threats turned from rhetoric to reality. Disputes between the United States and its largest trade partners prompted tit-for-tat tariff increases. Meanwhile, countries tightened screening of foreign corporate takeovers, advanced data localization policies, and clamped down on immigration. While we do not yet have complete 2018 data, there is evidence that such developments have begun to affect some international flows. Trade continued growing but at a slower pace while foreign direct investment (FDI) flows declined.
Read the full Harvard Business Review article.
Pankaj Ghemawat is a Global Professor of Management and Strategy and Director of the Center for the Globalization of Education and Management. Steven Altman is a Senior Research Scholar and Executive Director of the Center for the Globalization of Education and Management. Ghemawat and Altman are co-authors of the DHL Global Connectedness Index.