Globalization, since the Brexit and Trump shocks of 2016, has been shaped by a tug of war between economic fundamentals and policy threats. But predictions that globalization would collapse under a wave of economic nationalism have proven no more accurate than proclamations of a flat world that dominated the global business discourse a decade ago. The new DHL Global Connectedness Index (which we co-authored with Caroline R. Bastian) demonstrates that the world ended 2017 more globalized than ever before. While 2018 brought new obstacles — from tariff tiffs to blocked acquisitions — the result was a shifting playing field rather than an end to global business competition. How should executives think about building their businesses amid such turbulence? Since smart business decisions depend on accurate perceptions of the environment, executives should begin with a clear-eyed view of how globalization measures are trending.
The State of Globalization in 2019, and What It Means for Strategists
Executives should consider four key ideas.
February 06, 2019
Summary.
Globalization, since the Brexit and Trump shocks of 2016, has been shaped by a tug of war between economic fundamentals and policy threats. How should executives think about building their businesses amid such turbulence? Since smart business decisions depend on accurate perceptions of the environment, executives should begin with a clear-eyed view of how globalization measures are trending. To help business leaders navigate through — and even profit from — globalization’s turbulence, we offer recommendations for strategy (how to compete), presence (where to compete), architecture (how to organize), and non-market strategy (how to engage better with society).