Next-generation technologies and the next wave of globalization
By Jacques Bughin
Global value chains as we know them today could not exist without instant communications and supply chain management software. By reducing transaction costs, digital technologies enabled trade in goods and services to soar.
Now the next generation of technologies is here: advanced robotics, AI, the Internet of Things, 3-D printing, and blockchain. They are already influencing global trade, and their impact will grow in the years ahead. Some of them, including digital platforms and logistics applications, will continue to reduce transaction costs and fuel trade growth.
Automation technologies in manufacturing will change the way goods are made and the relative cost of different inputs, including labor, opening the door to more localized production near key consumer markets. Other technology-enabled innovations such as renewable energy, electric vehicles, and augmented and virtual reality can change the content and patterns of trade flows.
New research from the McKinsey Global Institute takes an in-depth look at the next wave of technologies — and how each one might change where things are made and what gets traded across borders. Read more in “Globalization in transition: The future of trade and value chains.”
Jacques Bughin is a director of the McKinsey Global Institute and a senior Partner in McKinsey’s Brussels office. This article was originally published on LinkedIn.
