The world we are living in, to an extent, depends on globalization, where multinational corporations (MNCs) go to countries where they can secure the lowest cost of labor and division of work to generate excessive revenue based on production scale.
The US government at that time encouraged multinational corporations to go out and produce based on low cost, such as invest in China to produce goods, and consume them when importing them back to the US domestic market. For a very long period of time, it was based on the high tech dominance by the US, while letting low tech production happen in China.
The accelerated growth of China, replacing Japan as the world’s second largest economy. Due to accelerated growth, the previous low cost labour advantage is diminishing, and it is required to pursue high tech as a new means for the competitive edge. The result of the US shift their trade policy and focus on banning and eliminating China becomes the threat for tomorrow’s world.
Anti-globalization movement, as you can see from a series of movements, to ban corporations from making supply or prohibit trade or investment in different countries. The typical move to bring all business, in particular those classify as strategically important or national security in concern, all need to move back and prohibit export or supply to the target enemy. With this mentality, the anti-globalization movement began. The result is the implementation of various measurements to move all the resources in the past distributed across the globe, and move them all into domestic. It helps to bring jobs in the domestic market. Those countries in the past depend on the foreign direct investment (FDI) will notice negative inflow and accelerate outflow, which result in the devaluation of the local currency.
Fuel further with the world transition toward fourth industrial revolution (4IR) industry 4.0, the world we are living in will not go back to pre COVID-19 pandemic, but a complete new world. The rules of competition will be completely different than before. Adapt the project economy and digital workspace and global virtual project team, it is just merely one fraction of the change, where the massive change is coming for those who are well prepared for it.
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.
Related post that may interest you: