The shifting global economic landscape and global businesses
Once upon a time, the center of gravity for economic dominance and global business activity was principally located within North America (the USA in particular), Japan and Western Europe.
During this period most of the world’s global trade, investment activities, production and multinational corporations were located in or between nations in the industrialised world.
Over the past 25 years the world’s economic landscape has shifted. While the G7 has been, and will remain, a relevant group, the decline in its relative share of world population and output will continue as its ranks are joined by rising developing economies.
In 1980, the G7 represented 68% of world GDP at market prices; today that share is 61%. By 2030, the G7 share of global GDP is predicted to fall to 43%. With regard to population, the G7’s 11.2% share in 2008 will to fall to 9.6% in 2030.
Watch Danny Quah’s TEDx talk ‘Economics, Democracy, & The New World Order’.
This is an additional video, hosted on YouTube.
Having watched the video clip, explore and discuss the dynamics and factors responsible for this shifting landscape.
Do you think this would continue into the future and how would this impact on global businesses and the global business environment?
© Coventry University. CC BY-NC 4.0