2. When you hear the word globalization,
what comes into your mind?
3. Question # 1: What is globalization?
Question # 2: How is information flowing around the world?
Question # 3: How are goods flowing around the world?
Question # 4: What part of global services trade is digital?
Question # 5: How is the global flow of capital developing?
Question # 6: How many people cross borders every year? Why?
Question # 7: Which countries are the most and least globalized?
Question # 8: What are the results of the increase in globalization?
5. Globalization is the process enabling financial and
investment markets to operate internationally,
largely as a result of deregulation and improved
communications.
http://www.theguardian.com/world/2002/oct/31/globalisation.simonjeffery
6. Flow of goods, services, capital, people, and information.
Numbers from 2012 in USD and in percent of global GDP.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
7. Flow of goods, services, and capital. In USD trillion and in percent of GDP.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
8. Total exports as a percentage of world GDP.
GDP = Consumption + Investments + Government spending + (Exports – Imports).
http://www.dhl.com/content/dam/Campaigns/gci2014/downloads/dhl_gci_2014_study_high.pdf
10. Economic globalization
1.The extent of cross-border trade, investment and revenue
flows in relation to GDP.
2.The impact of trade and capital transaction restrictions.
http://globalization.kof.ethz.ch/media/filer_public/2015/03/04/press_release_2015_en.pdf
11. Social globalization
1. Cross-border personal contacts measured in the form of telephone
calls, letters and tourist flows as well as the size of foreign population.
2. Cross-border information flows measured in terms of access to the
internet, TV and foreign press products.
3. Cultural affinity to the global mainstream measured in terms of the
number of McDonald’s and IKEA branches as well as book imports
and exports in relation to GDP.
http://globalization.kof.ethz.ch/media/filer_public/2015/03/04/press_release_2015_en.pdf
14. The flow of information is increasing
1. Facebook attracted 6 million users in its 1st year.
2. It took radio 38 years to attract 50 million listeners.
3. It took more than 50 years after the telephone was
invented, until half of American homes had one.
http://www.mckinsey.com/insights/strategy/the_four_global_forces_breaking_all_the_trends
19. Much of the value of knowledge-intensive flows has yet
to be realized.
Example
The world’s supply of research has made a leap forward
as emerging markets have come online and as
academics have begun collaborating with international
colleagues at a rate not seen before.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
20. Very little of the content created by users on, for example,
blogs, has been monetized directly from users. As a result,
the significant value that this content generates does not
show up in economic statistics but instead reveals itself as
“consumer surplus.”
Previous McKinsey research has shown that the surplus from
the United States and Europe alone is close to USD 250 billion
each year.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
21. Why do you share information on social media?
What is your purpose?
Question for you
23. Top 3 footwear exporting countries in 2014
http://wits.worldbank.org/detailed-product-analysis-visualization.html
24. Top importers of
coffee in 2013:
# 1: USA.
# 2: Germany.
# 3: Italy and France.
http://atlas.cid.harvard.edu/explore/tree_map/import/show/all/0901/2013/
25. In 2014, 35% of goods crossed
borders, up from 20% in 1990.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
26. Value of global exports, 1800 - 2014
https://ourworldindata.org/grapher/world-trade-exports-constant-prices
27. From 1995 to 2012, the flow of goods has
grown by an average of 7.8% per year.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
30. 3D printing technology could make it easier
and cheaper to produce goods and services on
home soil. That could mean less trade and less
interaction between nations and their companies.
http://uk.businessinsider.com/credit-suisse-report-on-risks-to-globalization-2015-9
37. Global capital flows expanded 25 times
between 1980 and 2007.
http://www.mckinsey.com/insights/strategy/the_four_global_forces_breaking_all_the_trends
38. The volume of cross-border payments is growing,
but the size of individual payments flying around the world
has diminished, as smaller economic actors have engaged in
cross-border trade, enabled by lower transaction costs
online and the rise of international e-commerce.
Between 2007 and 2011, that average value fell by 27%
in the UK, 58% in Germany, and 71% in Mexico.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
43. The number of people, who travel, is increasing.
More than 1 billion people crossed borders
in 2009, over 5 times more than in 1980.
http://www.mckinsey.com/insights/strategy/the_four_global_forces_breaking_all_the_trends
46. Short-term travel and students enrolling in
foreign universities have grown at 3.4% and 4.8% per
year, respectively, between 2002 and 2010.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
47. Almost 250 million people live outside their country of birth.
http://www.mckinsey.com/global-themes/employment-and-growth/global-migrations-impact-and-opportunity
48. Between 1990 and 2015, the number of migrants
increased by 60%.
Migrants = people living outside their country of birth.
http://www.un.org/en/development/desa/population/migration/generalassembly/docs/A_71_296_E.pdf
49. Of the almost 250 million people,
who live outside their country of
birth, 16 million people come from
India.
http://www.mckinsey.com/global-themes/employment-and-growth/global-migrations-impact-and-opportunity
50. Of the almost 250 million people,
who live outside their country of
birth, 47 million people live in the
United States of America.
http://www.mckinsey.com/global-themes/employment-and-growth/global-migrations-impact-and-opportunity
51. 42% of the people, who live in Sydney, Australia, were born
in another country than Australia.
http://www.mckinsey.com/global-themes/employment-and-growth/global-migrations-impact-and-opportunity
52. Of the almost 250 million people, who live outside
their country of birth, 10% are refugees and
asylum seekers who migrated to other countries
to escape conflict and persecution.
http://www.mckinsey.com/global-themes/employment-and-growth/global-migrations-impact-and-opportunity
http://www.un.org/en/development/desa/population/migration/generalassembly/docs/A_71_296_E.pdf
53. Research shows that when refugee food aid is in the form of cash rather
than food, the host country has greater economic benefits.
Example
http://www.wfp.org/ provides mobile phones linked to payment accounts
to refugees, who can then purchase food and other items at refugee and
host-country shops that accept mobile payments. Cash aid gives refugees
greater freedom in their purchases and greater variety in their diets. Also,
rising incomes of host-country businesses and farms stimulate new
rounds of spending and income gains in the local economy.
https://hbr.org/2016/10/research-refugees-can-bolster-a-regions-economy
54. Narrowing the wage gap between immigrant and
native workers from 20 – 30 percent to 5 - 10 percent
through better economic, social, and civic integration
would translate into an additional global output
of USD 800 billion to USD 1 trillion per year.
http://www.mckinsey.com/global-themes/employment-and-growth/global-migrations-impact-and-opportunity
60. Research shows that greater openness to cross-
border exchanges of goods, services, finance,
and data and communication flows is linked to
faster growth in GDP, with both a short-term
and a long-term effect on growth.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
61. 5 results of globalization
1. More efficient allocation of resources across countries.
2. Higher productivity and efficiency.
3. Increased average incomes and wages.
4. Greater competition.
5. Lower prices and increased product variety and quality.
http://www.oecd.org/sti/ind/45954526.pdf
62. Openness to both inflows and outflows is linked to greater
economic growth in various ways:
by promoting the efficient allocation of resources,
by increasing competition,
by giving the domestic market access to ideas
and innovations.
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
63. The economic expansion and explosion in trade has
been accompanied by growing income inequality.
China’s Gini index, a measure of income distribution
where 0 is perfect equality and 1 is perfect inequality,
has grown from roughly 0.3 in the early 1980s to above
0.45 in recent years.
http://harvardmagazine.com/2015/03/how-globalization-begets-inequality
64. Between 1988 and 2008. the Asian middle class and the global 1%
gained strongly from globalization
https://hbr.org/2016/05/why-the-global-1-and-the-asian-middle-class-have-gained-the-most-from-globalization
65. Percent agreeing that
globalization is a force for good.
http://www.economist.com/blogs/graphicdetail/2016/11/daily-chart-12
GDP per person.
Percent change 2011-2015
