How to manage your emotions as a leader
It is critically important that leaders manage their emotions. How, for example, do you respond to negative feedback from a client? The following should help you respond more effectively to the ups...
Brain Circuits
Get to know Globalization 3.0: A pop quizÂ
After the first and second waves of globalization, we are firmly in wave three. See it clearly in this three-question quiz.
If it’s cheaper to hire a translator, programmer, social media manager, or designer in another country, why not cross international borders for your required service? While today’s information and communication technologies enable the arbitrage of labor services, some are still doubting what difference this makes on the ground.
Test how well you know what’s happening in the realm of trade with this quick, three-question quiz:
1. Which of the following categories of global trade exports is currently climbing the most based on value?
A. Manufactured goods
B. Foreign direct investment (FDI)
C. Information and communication technology (ICT)-enabled services
Whatever rumors you may have heard about deglobalization are simply not happening, most especially in the realm of services. The world is growing closer here, with important implications for the future of work.
2. Where is ICT-enabled services growing fastest?
A. European Union member states
B. The United States
C. Emerging economies
Although developed countries, such as the United States and EU member states, are where most modern service exports originate, the share from developed economies is growing considerably faster. Look at what happens in the second chart above when we set 2016’s service export levels at 100 for both developed and emerging economies: Since that point, developed countries have grown 41% compared with 59% for emerging economies.
3. What’s happening in terms of FDI these days?
A. Investments in three categories – services, manufacturing, and other non-services – are evening out over time
B. Manufacturing continues to be an FDI magnet
C. Services are increasingly dominating
Over time, we’ve seen the focus in FDI shift decisively from trade to services. A recent report from the UN Trade and Development (UNCTAD) makes this clear. In the most recent data from 2022-2023, 81% of FDI is promoting service activities, with only 13% for manufacturing. So, in terms of this form of openness and globalization, it is a game of services, not of manufacturing.
Looking ahead
My 2024 prediction still holds that simultaneous speech translation (SST) will make service exports even more attractive around the globe. English speakers be prepared: When offering your skills to the labor market, you are likely to face much tougher competition as the language barriers crumble.
Further reading:
Why is manufacturing-export-led growth so difficult?
Globalisation’s evolving landscape (UNCTAD spotlight intervention): PDF and video
Authors
Related
How to become a digital sustainability leader in 5 steps
Companies that excel in both digital and sustainable transformation attract a stock market premium – but how do you tap into that value? Here’s a five-step guide to outperforming your competitors. ...
Strategies for negotiating cross-sector alliances
Given the world’s many challenges, the ability to forge effective alliances across business, government, the non-profit sector, and academia has become essential to building durable solutions. Here are eight steps to guide...
The power of limits: Eno’s strange exercises for innovation
Visionary composer Brian Eno uses “strange exercises” to help foster creative conditions for writing new music – exercises that can be readily adapted to innovate in business. ...
Learn Brain Circuits
Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Go on - they only take five minutes.
Â
Explore Leadership
What makes a great leader? Do you need charisma? How do you inspire your team? Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk.
Â
Join Membership
Log in here to join in the conversation with the I by IMD community. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises.
Â