Five forces reshaping the global economy Mc. Kinsey Global Survey results. The core drivers of globalization are alive and well, but executives are still grappling with how to seize the opportunities of an interlinked world economy. Interfata Windows Xp In Limba Romana. An ongoing shift in global economic activity from developed to developing economies, accompanied by growth in the number of consumers in emerging markets, are the global developments that executives around the world view as the most important for business and the most positive for their own companies profits over the next five years. Executives also identify two other critical positive aspects of globalization technologies that enable a free flow of information worldwide and, increasingly, global labor markets. These four trends, of the ten we asked about, also are the ones that the biggest share of respondentsaround halfsay their companies have taken active steps to address. In this sixth annual survey asking executives about the forces shaping the world economy,1there is little change in how respondents view the importance of global trends compared with previous yearseither for business in general or for their own companies profits Exhibit 1. Clearly, the financial crisis and economic downturn have not shaken these key trends. Continued faith in the positive effects of globalization combined with a move away from short term planning likely reflects rebounding optimism about global economic prospects and is consistent with the findings of other Mc. The core drivers of globalization are alive and well, but executives are still grappling with how to seize the opportunities of an interlinked world economy. Mark Carney, the governor of the Bank of England, admists economists have misled workers about job losses from globalization. Kinsey surveys on the economy. In addition to our annual questions on individual global trends, this years survey explores for the first time five interconnected themes that highlight the opportunities and challenges faced by global economic integration itself and by companies seeking to profit from it growth in emerging markets labor productivity and talent management the global flow of goods, information, and capital natural resource management and the increasing role of governments. Exhibit 1. How global trends affect profits. Globalization and Particularism As the globalization of capital, international standards and prices determine the pace of trade and investment around the world. Globalization refers to the process of integration across societies and economies. The phenomenon encompasses the flow of products, services, labor, finance. The world behind a simple shirt, in five chapters. India is poised to become the thirdlargest consumption economy by 2025. But behind the growth headlines is an important story of shifting consumer behaviors and. The findings show that the global economy faces significant challenges as it continues to integrate. F.A. Premier Football Manager 2000'>F.A. Premier Football Manager 2000. For example, most respondents6. In addition, high levels of public debt are a headache in Europe and North America, where most executives fear the debt will have a negative impact on GDP growth. There are specific corporate challenges too. Half of the respondents are only somewhat optimistic they will be able to find the right talent to meet their companies strategic goals. Windows Xp Media Center Edition 2005 Toshiba. Likewise, only half of the executives reported that their companies have taken steps to address the shift in global economic activity from developed to developing economiesthe force that is reshaping the global economy more than any other. Growth and risk management in emerging markets. Emerging markets, with populations that are young and growing, will increasingly become not only the focus of rising consumption and production but also major providers of capital, talent, and innovation. This will make it imperative for most companies to succeed in emerging markets. However, no more than 4. To capture growth from emerging markets, the actions most often takeneach cited by around half of the respondentsare building a local presence, developing partnerships or joint ventures with local companies, recruiting talent from emerging markets, and developing new business models Exhibit 2. Executives representing Chinese and Indian companies report they are developing new business models at a significantly higher rate than companies from any other region. Perhaps more surprising, respondents at companies headquartered in North America report significantly lower rates of actions to capture emerging market growth than those from any other region, with fully 2. In addition, large and public companies significantly outpace small and private ones in pursuing actions to capture emerging market growth. Exhibit 2. Growth in emerging markets. On risks faced by their companies in emerging markets, executives cite breach of intellectual property 4. Executives at North American, high tech, and telecom companies are most concerned about IP, while companies in the financial sector worry most about currency volatility and energy companies about geopolitical instability. Labor productivity and talent management. Low birth rates and graying workforces in most developed economies will make it hard for them to achieve steady growth unless they continue to make sizable gains in labor productivity. A majority of all respondents, 6. Nonetheless, developed and developing economies alike must become more innovative at sourcing talented employees, whether by tapping global labor markets or making better use of older workers. Just less than 4. Notably, respondents at companies based in developing markets largely share the same views as those from developed markets on this point. The greatest projected talent shortfalls are in three functionsmanagement, R D, and strategywith significant variations between executives in different regions Exhibit 3. Interestingly, executives in China are much more concerned about a shortage of management talent than they are about R D specialists. For India, it is the reverse. Exhibit 3. Where the talent shortfalls are. Companies are shifting their strategic planning from crisis mode to a more balanced consideration of short term profitability and long term strategic issues one third now focus equally on the short and long terms, compared with one fifth in 2. When indicating where their companies will find the talent they need, executives most often cite talent from emerging markets to work there 4. North American companies, their executives say, are counting more than all others on sourcing talent in developed economies, including retrained talent 3. This is consistent with the lower number of actions North American companies are taking to capture emerging market growth. Global flows of goods, information, and capital. Executives are generally optimistic that the relatively free flow of goods and capitaltwo core drivers of globalizationwill survive the financial crisis and the economic downturn. However, few see much further progress occurring in the next five years, a finding that is consistent with the modest hopes for multilateral cooperation also seen in this survey. Sixty two percent of respondents expect moderate increases in global trade flows, but just 2. As for the integration of capital markets, a majority5. Another 1. 8 percent predict that capital markets will be mostly integrated, with only a few countries restricting flows. Respondents in North America and Europe are least optimistic, with only 1 and 2 percent, respectively, expecting fully integrated, seamless capital markets in contrast, 5 percent of executives in China and Latin America think this will be the case. The free global flow of information has already resulted in radical pricing transparency and new networks of engaged consumers, and this probably is only the beginning. Disruptive changes in consumer behavior could have great impact on business over the next five years. Executives expect that the most powerful effects on their companies will be increased innovation, greater consumer awareness and knowledge, and increased product and service customization Exhibit 4. Exhibit 4. Effects of global information flows. Natural resource management.