If itâs cheaper to hire a translator, programmer, social media manager, or designer in another country, why not cross international borders for your required service? While todayâs information and communication technologies enable the arbitrage of labor services, some are still doubting what difference this makes on the ground.
Test how well you know whatâs happening in the realm of trade with this quick, three-question quiz:
A. Manufactured goods
B. Foreign direct investment (FDI)
C. Information and communication technology (ICT)-enabled services
Whatever rumors you may have heard about deglobalization are simply not happening, most especially in the realm of services. The world is growing closer here, with important implications for the future of work.
A. European Union member states
B. The United States
C. Emerging economies
Although developed countries, such as the United States and EU member states, are where most modern service exports originate, the share from developed economies is growing considerably faster. Look at what happens in the second chart above when we set 2016âs service export levels at 100 for both developed and emerging economies: Since that point, developed countries have grown 41% compared with 59% for emerging economies.
A. Investments in three categories â services, manufacturing, and other non-services â are evening out over time
B. Manufacturing continues to be an FDI magnet
C. Services are increasingly dominating
Over time, weâve seen the focus in FDI shift decisively from trade to services. A recent report from the UN Trade and Development (UNCTAD) makes this clear. In the most recent data from 2022-2023, 81% of FDI is promoting service activities, with only 13% for manufacturing. So, in terms of this form of openness and globalization, it is a game of services, not of manufacturing.
My 2024 prediction still holds that simultaneous speech translation (SST) will make service exports even more attractive around the globe. English speakers be prepared: When offering your skills to the labor market, you are likely to face much tougher competition as the language barriers crumble.
Why is manufacturing-export-led growth so difficult?
Globalisationâs evolving landscape (UNCTAD spotlight intervention): PDF and video
Todayâs workforce often includes a mix of permanent employees, freelancers, and outside contractors â but even organizations with mostly external workforces or highly autonomous workforces need proximity to succeed over the long...
Few things are scarier than being at the front of the room and losing your audience. Consult the checklist of questions below to understand why people are reacting negatively to what you...
Many CHROs have yet to understand the implications of GenAI for their employees. Test your knowledge of how it differs from âtraditionalâ forms and check out the tips on integrating GenAI tools...
Have you ever found yourself in a scenario when, as leader,âŻyouâre expected to know the answer to a question but donât? In the second of a two-part series, Francesca Giulia Mereu suggests...
Explore first person business intelligence from top minds curated for a global executive audience