The Current State of Globalization: How Connected is the World?
As technology and communication capabilities increase, it may be safe to assume that the world is becoming more connected with many countries becoming integrated to the world economy. This basic idea is called globalization and with globalization comes many benefits such as new opportunities in emerging markets and increased access to international trade. To many people, globalization is making the world flat meaning businesses can collaborate and operate across borders without regard to geography or distance in today’s modern technological and political landscape. Many businesses are beginning to realize the opportunities abroad made possible by an increasingly connected world. However, is there a way to measure how connected the world really is?
A recent study released by DHL contains surprising and very interesting results regarding globalization. This detailed country-by-country analysis of the flows that connect the world indicates that globalization is still not as advanced as most people believe. It also shows that continued economic integration is very much possible and could even increase global gross domestic product by more than five percent. The study clearly documents that global connectedness has enormous room to expand and can have a beneficial impact on international business if economic integration increases. Another study by Ernst & Young addresses the challenges of increasing globalization and how to overcome these obstacles to take advantage of opportunities in new markets. If businesses successfully respond to these challenges, both these studies suggest that global integration has tremendous potential to increase.
These studies address major issues with globalization and also show the remarkable potential of a connected world. If globalization expands, how do you think it will impact businesses worldwide and the global economy? Feel free to comment below and let us know what you think about globalization and its impact on international business! You can also view the specific rankings from these two studies by viewing the country indices pages on globalEDGE under the country insights section!