Is The Essence Of Globalization Shifting?
Is the Essence of Globalization Shifting? Since the Great Recession of 2007-2009, a number of the standard economic measures of globalization have declined–flow of goods, services, and financing. But other aspects of globalization are increasing, like communication and the ability of small firms and individuals to participate in international markets. The McKinsey Global Institute explores these changes in a March 2016 report Digital globalization: The new era of global flows, written by a team led by James Manyika, Susan Lund, Jacques Bughin, Jonathan Woetzel, Kalin Stamenov, and Dhruv Dhingra. Here is a rough way of measuring the recent drop in standard measures of globalization.
The pubs show steps of international moves of goods services, and finance measured in trillions of dollars. The series shows the total moves as a share of global GDP. The McKinsey report argues that the form of globalization is shifting. Much of the debate emphasizes international moves of information and data crossing borders, but there is some emphasis on international flows of people at tourists also, migrants, and students, as well as changes in e-commerce.
Our econometric research signifies that global flows of goods, international immediate investment, and data have increased current global GDP by approximately 10 percent in comparison to what could have occurred in a global without any flows. 7.8 trillion in 2014 alone. 2.8 trillion of the effect, exerting a larger impact on growth than traditional goods moves.
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