At a time when globalization is taking a step backward, what's the
best way to organize a global enterprise? The key, explains
political economist Steven Weber, is to prepare for a world
increasingly made up of competing regions defined by their own
rules and standards. Globalization has taken a hit as trade wars
and resistance to mass migrations dominate headlines. Are we
returning to the old world of stand-alone nations? Political
economist Steven Weber argues that we are heading toward something
new. Global connectedness will not dissolve but will be defined by
"regional" blocs, demarcated more by the rules and standards they
follow than by territory. For leaders of firms and NGOs with global
ambitions, navigating this transformation is the strategic
challenge of the decade. Not long ago, we thought the world was
flattening out, offering a level playing field to organizations
striving for worldwide reach. As global economic governance
expanded, firms shifted operations to wherever was most
efficient-designing in one country and buying, manufacturing, and
selling in others. Today, the world looks bumpier, with rising
protectionism, national struggles over data control, and tensions
over who should set worldwide standards. Expect emerging regional
blocs to be dominated by the major rule-makers: the US, China, and
possibly the EU. Firms and NGOs will need to remake themselves by
building complete, semi-independent organizations in each region.
Every nation will choose which rule-maker it wants to align with,
and it may not be the one next door. This new world has the
potential to be more prosperous, Weber argues, but friction between
the dynamics of geography and technology will make it more risky.
Pioneering research, creative thinking, and colorful storytelling
from the frontlines of the global economy combine to make this a
must-read for leaders and analysts facing tomorrow's world.
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