Thursday, October 19, 2017
Globalization in the age of Trump
Globalism Analysed
October 18, 2017, 11:57 PM IST Economic Times in ET Citings | Economy, World | ET
By Pankaj Ghemawat
Business leaders are scrambling to adjust to a world few imagined possible just a year ago. The myth of a borderless world has come crashing down. Traditional pillars of open markets — the US and the UK — are wobbling, and China is positioning itself as globalisation’s staunchest defender. Countries in North America and Europe have experienced waves of anti-globalisation sentiment.
In the face of such uncertainty, leaders of multinationals wonder whether they should retreat, change strategy or stay the course. In making that decision, they need to understand two things. First, the world is less globalised than even experienced executives realise. Two, history tells us that even in a trade war, global trade and investment would still be too large for strategists to ignore.…
Recall that just a decade ago, business leaders believed that the world was becoming “flat” and that global companies, unconstrained by country borders, would soon dominate the world economy. Those exaggerated claims were proven wrong.
Today’s cries for a massive pullback from globalisation in the face of new protectionist pressures are also an overreaction, in the other direction.
While some of the euphoria about globalisation has shifted to gloom, especially in the US, globalisation has yet to experience a serious reversal. And even if it did, it would be a mistake to think of the end of globalisation: the “rewind” button on a tape recorder shouldn’t be confused with the “off” button.
(From “Globalisation in the Age of Trump”)
October 18, 2017, 11:57 PM IST Economic Times in ET Citings | Economy, World | ET
By Pankaj Ghemawat
Business leaders are scrambling to adjust to a world few imagined possible just a year ago. The myth of a borderless world has come crashing down. Traditional pillars of open markets — the US and the UK — are wobbling, and China is positioning itself as globalisation’s staunchest defender. Countries in North America and Europe have experienced waves of anti-globalisation sentiment.
In the face of such uncertainty, leaders of multinationals wonder whether they should retreat, change strategy or stay the course. In making that decision, they need to understand two things. First, the world is less globalised than even experienced executives realise. Two, history tells us that even in a trade war, global trade and investment would still be too large for strategists to ignore.…
Recall that just a decade ago, business leaders believed that the world was becoming “flat” and that global companies, unconstrained by country borders, would soon dominate the world economy. Those exaggerated claims were proven wrong.
Today’s cries for a massive pullback from globalisation in the face of new protectionist pressures are also an overreaction, in the other direction.
While some of the euphoria about globalisation has shifted to gloom, especially in the US, globalisation has yet to experience a serious reversal. And even if it did, it would be a mistake to think of the end of globalisation: the “rewind” button on a tape recorder shouldn’t be confused with the “off” button.
(From “Globalisation in the Age of Trump”)
