The Great Unraveling of Globalization

The trends in globalization of business and trade come and go, and long-term investment is a challenge in competitive global markets. Companies that fail to adjust suggest that globalization is falling apart. In an article for the Washington Post, Jeffrey Rothfeder describes multinational firms that complain about global sales results. In a climate of uncertainty, past sales do not promise future sales. Multinationals overlook that globalization encompasses culture, too – consumers in wealthy and developing nations are setting new priorities, redefining comfort, making do and spending less. One strategy described by Rothfeder: “A few companies are choosing a relatively unorthodox globalization strategy, an approach that could be called localization.” Waves of frugality, conflict, crime, corruption and low fertility rates, contribute to less consumer spending as well as more countries embracing a protectionist stances. – YaleGlobal