Globalization in Transition
Global value chains are being reshaped by rising demand and new industry capabilities in the developing world as well as a wave of new technologies. According to the report by the McKinsey Global Institute, Globalization in Transition, over the past decade global trade in services has grown 60 percent faster than trade in goods.
Globalization is in the midst of a transformation. Yet the public debate about trade is often about recapturing the past rather than looking toward the future. The mix of countries, companies, and workers that stand to gain in the next era is changing. Understanding how the landscape is shifting will help policy makers and business leaders prepare for globalization’s next chapter and the opportunities and challenges it will present.
Global value chains are changing in fundamental ways as demand soars in the developing world, China and other developing economies build more comprehensive supply chains, and next-generation technologies come online. These shifts have implications for where and how companies compete. This period of transition is an opening for countries and regions to carve out new specializations and new roles in value chains, but policy makers will need to address the dislocations globalization can cause even as they prepare for the opportunities of the future.
You can read the full report at mckinsey.com.