The Logic World Has Changed: Unpacking the Evolution of Globalization

In a world where globalization has been a dominant force for decades, a new era has emerged. The flows of goods, knowledge, and labor that drive global integration have undergone significant changes, as revealed by recent research from the McKinsey Global Institute (MGI). In this article, we'll delve into the findings and explore what they mean for our interconnected future.

One of the most striking discoveries is that the flows representing knowledge and know-how, such as intellectual property (IP) and data, have accelerated and are now growing faster than the flow of goods. This shift has led to stronger ties between nations, as GDP growth has outpaced the growth of goods flowing across borders. Interestingly, despite global disruptions, the flow of goods has maintained a steady pace, albeit at a slower rate.

This new dynamic has sparked questions about the fate of globalization. With many predicting its demise due to conflicts like the war in Ukraine and economic downturns, MGI's research suggests that globalization is not disappearing but rather evolving. The McKinsey Global Institute's director, Olivia White, notes that pundits have incorrectly predicted the end of globalization for years.

The evolution of global flows is evident across various sectors. Take, for instance, global brewer AB InBev, which has flourished despite turbulent market conditions. According to CFO Fernando Tennenbaum, the company has thrived due to its adaptability and ability to navigate changing circumstances.

As we move forward in this new era of globalization, it's essential to understand that the world is not abandoning international trade but rather recalibrating it. The flows of goods, knowledge, and labor are reshaping global integration, presenting both opportunities and challenges for businesses, nations, and individuals alike.

In conclusion, while the logic world has changed, globalization is not in retreat. Instead, it's evolving, driven by the acceleration of knowledge and service-based flows. As we look to the future, it's crucial to recognize that this evolution will continue to shape our interconnected world.

Logic world has changed