There are some major ways in which the act of globalization is changing. For a start, global exports as a share of gross output has sharply reduced from 28.1% in 2008, to just 22.5% in 2017. The rise in trade volume has also reduced. The services trade on the other hand, is growing at a much faster pace, 60% in fact higher than goods trade. Telecom & IT, business services and IPRs lead the way. Greater importance is now attributed to the labour- cost arbitrage. Business innovation along with research and development now occupies a greater share of the investment pie, having nearly tripled during this same period. Trade is now booming when individual regions are concerned. The EU28 region and the Asia- Pacific are right on top of this, with the NAFTA closely following by.

Source:https://www.mckinsey.com/featured-insights/innovation-and-growth/five-hidden-ways-that-globalization-is-changing

Uploaded Date:26 February 2019