Globalization Shifts: Slowing Trade, Technology, and Disruption, Appunti di International Management

Scarica Globalization Shifts: Slowing Trade, Technology, and Disruption e più Appunti in PDF di International Management solo su Docsity! PODCAST 1: Slowbalization 3 different perspectives given by 3 experts. 1. What is it? After 20 years of economic boom, the economic face a slowdown of global trade. Stagnation of the economy. The economy is shifting trought services, that are less traded and as a consequence there are less trades globally. There was a too high optimistic behaviour previously. Now the economy and trades faced this slowdown. In terms of tariff the focus is on the impact on the profits of the company. Problem of the uncertainty over antitrust and policy that do not allow ingent investment of capitals due to this uncertainty. Rules are fragmentatic like tariffs that changes over time. China is acting different from EU and US also in terms of Antitrust. What should be worried about? What is happening is good for efficiency, also tax efficiency. For poor people and poor countries is becoming even more difficult to catch up with the richest ones. 2. Measuring the growth of international trade data. Record the value of goods once they cross the borders. Import statistics of the different countries in order to count the value of the international trades worldwide. Double counting of the trades is based on the number of times that the goods cross borders lead to the decline of the value content of the trade. Over time there was a decline in the value added of trades. Slowdown in the expansion of the global value chain after the great recession of 2008/09. Decline in trade costs in recent years triggered the transition to a new world characterized by the important role of the international trades. A problem is the lack of good data to track this phenomenon. 3. Globalization is in the middle of long term structural changes. There are some important shifts: - Trade intensity is declining - Services trade continous to grow, and future is going in this direction. - Low wages are no longer the main factor that allows the company to decide where to produce. Only 18%. - Value chains are becoming much more knowledge intensive with a wider need of R&D. - Trades from 2013 are within regionals blocks (inside China) China is the largest exporter. Chinas consumers are becoming richer and so this is leading to changes in the trade and import/exports of the country. Wages in China risen and also the automation technology is increasing. Labour are becoming less important instead of automation. That is why the low wage countries are becoming less important for the production. Now are more important the countries that have the right innovation and technological processes. The countries that are very close to where consumers are can benefit from it. Like Mexico and Turkey that are close to US and EU. Globalization increase competition, because the competition is global now. Also the innovation is very fast so it is important to use it very quickly in order to have advantages. The role of the regulators in the international trades and importance of flow of datas. The globalization strategies are changing, investing more in domestic supply chain in order to respond to the long term structural shifts. Innovation and technologies may allow to