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E-SPIN
Thursday, 12 May 2022 / Published in Global Themes and Feature Topics, Industries

What next after Slobalization from Globalization

COVID-19 pandemic caused the problem of interconnections and slowed down the multi-locaization of production systems. As you can observe, the current US president is proposing a US-First policy, to bring back all the strategic capability domestically, to produce works. From what has been really carried out, we can interpret that the nurture of the world’s number 2 super economic power was a mistake in the past, since now attempts to reverse it.

Technology advancement makes it possible to market to global markets, in the real time, and complete the transaction in the real time, regardless where you are. Up to yesterday, division of work is the best practice to follow, where global giant multinational corporation to setup local plants in the low cost developing countries, to offer massive of the job to local in exchange for the low labor cost which product the product in low cost and enjoy the margin where you can not be achieve in developed countries. Utilise the global shipping and logistics to ship the finished goods or semi finished product to another country to assemble before passing it to the end consumer hand. This is why China is known as a world factory and rises so far during the year.

But once the rise of world number 2 super economy power becomes a fact, it starts to challenge number 1 in various sectors and industry leadership. Since COVID-19 pandemic, the speed of multi-localisation of production systems has slowed down, this is why it is called slowbalization. On the other hand, increasing speed of digitisation makes it nothing cross-border in physical need. The digital world economy has become reality, evident in a lot of the areas, be it software application, web services, all the App Store software you purchase and install. Even the physical money notes and currency is toward digital, you saw the mobile wallet and cashless transaction happen in most of the society today. Lot of the transactions can happen in digital manner, even web meeting and remote-to-work and support regardless where you are, the world is transit toward anywhere workspace.

With the high tech automation and robotic plant, it can be extremely productive, to mass production or custom-to-made production of high tech and micro precision made products, as such, single capital intensive plants make sense for those contexts. Relocate the massive amount of oversea investment and bring it back to domestic which benefits the local domestic workforce by producing more local jobs, it makes sense to get the local citizen to support it.

Until the Ukrainian crisis is really over, the world will still be under the influence, and there will be long-standing consequences for both ends, and the rest of the world. Relocation of a lot of industries and sectors is for sure as the trend goes. We expect to see world tourism recovery, due to most of the country starting to reopen and welcome tourists, since they are bringing in a net flow of income to the destination country. Every country depends on exports to some extent, and interdependence is what the current world economy is made for. Let’s have a positive view of the future, after the end of the war, and everyone focuses on trade, like the past.

While the world expects the US for recession, based on all the existing current data. An inverted yield curve and rising interest rates on the back of high inflation, plus COVID uncertainty and disruptions caused by Russia-Ukraine conflict. With that eventually becoming reality, it will mean a lot for the rest of the world. Let see What next after Slobalization from Globalization?

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.

Other post you may be interest:

  1. 75 percent of global Fortune 500 companies fail to catch the next waves of big things
  2. The rise in global inflation in next normal
  3. International shipping crisis and the rise of supply cost globally
  4. Pandemic will continue but COVID-19 ends
  5. End of zero-COVID strategy and toward co-exist
Tagged under: COVID-19, Globalization, Slobalization

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