What’s next for globalization?
Global value chains are being reshaped by rising demand and new industry capabilities in the developing world as well as a wave of new technologies. Labor-cost arbitrage is on the wane in most value chains, while services, intangibles, and knowledge intensity are on the rise.
A recent report from the McKinsey Global Institute takes an in-depth look at 23 different industry value chains around the world — and it also steps back to consider what this means for individual countries and workers. These shifts may favor some advanced economies, while posing steeper challenges for countries that missed out on the last wave of supply chain expansion.
The next phase of globalization demands more attention to digital infrastructure, service capabilities, and workforce skills. Take a look at the full report, “Globalization in transition: The future of trade and value chains.”
