Is The Essence Of Globalization Shifting?

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 finance. But other areas of globalization are on the rise, 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, compiled 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 procedures of globalization.

The bars show methods of international flows of goods services, and financing assessed in trillions of dollars. The line shows the full total moves as a share of global GDP. The McKinsey report argues that the form of globalization is shifting. Much of the discussion emphasizes international flows of information and data crossing edges, but there is also some emphasis on international flows of people at tourists, migrants, and students, as well as changes in e-commerce.

Our econometric research signifies that global flows of goods, foreign direct investment, and data have increased current global GDP by approximately 10 percent compared to what would have occurred in a global without any moves. 7.8 trillion in 2014 by itself. 2.8 trillion of this effect, exerting a more substantial impact on development than traditional goods moves.

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