Economics

Trends: Globalisation and Re-nationalisation

By 19. November 2015 No Comments

Today is the Smart City Congress in Barcelona and there are four main Key-Speakers. Flowing their tracks in the internet leads to some interesting AHAs. So Professor Pankay Ghemawat from Barcelona: What if we are all wrong thinking the world is Global? It is not. We are more nationalistic and trading around our countries. He and others did a large report with DHL and analyzed the data. The trend looks a bit shocking. In this article comes the evidence: „ In 2013, only 3.2 percent of the human race lived in countries other than those in which they were born, compared to 2.8 percent in 2000. That’s virtually the same as it was a century before, back in 1900, when it was 3 percent.“

Perhaps this sounds very strange if you are working for a company that talks about „we employ people form 128 nations in our company. Or 30 % of our population are foreigners in the city“. Perhaps we should not look to much on global data, but also to the spots of density. From both sides, from the highest density and the large global point of view. I think, the truth is in the middle.  These statistics really might bring the full picture.

But let us go on – there are some more insights to share: And what about trade? In the same article „The transnationality index (TI) used by the United Nations Conference on Trade and Development (UNCTAD) is the weighted average of three factors:  foreign sales as a percentage of a firm’s total sales; foreign assets as a percentage of the firm’s total assets; and foreign employment as a percentage of total employment. The higher the value, the more dependent a firm is on foreign sales, assets and employment, and the less dependent it is on its national home market.“ Most of the so called globalized companies do not match more than 50 % trade outside their home base. So Apple and Microsoft are still american companies? So what is trade all about? The visualization of DHL is impressive. Circles and Circles around home base … and one nice figure: only 18 percent of Internet traffic and only 2 percent of telephone calls were international. I bet he is right.