General Article Digital globalisation: the new era of global flows

Topic Selected: Globalisation
This article is 5 years old. Click here to view the latest articles for this topic.

Soaring flows of data and information now generate more economic value than the global goods trade.

By James Manyika, Susan Lund, Jacques Bughin, Jonathan Woetzel, Kalin Stamenov and Dhruv Dhingra

 

Conventional wisdom says that globalisation has stalled. But although the global goods trade has flattened and cross-border capital flows have declined sharply since 2008, globalisation is not heading into reverse. Rather, it is entering a new phase defined by soaring flows of data and information.

Remarkably, digital flows – which were practically non-existent just 15 years ago – now exert a larger impact on GDP growth than the centuries-old trade in goods, according to a new McKinsey Global Institute (MGI) report, Digital globalization: The new era of global flows. And although this shift makes it possible for companies to reach international markets with less capital-intensive business models, it poses new risks and poli

Would you like to see the rest of this article and all the other benefits that Issues Online can provide with?

Sign up now for an immediate no obligation FREE TRIAL and view the entire collection