We Are Less Globalized Than We Think

2/4/2014

These overstatements regarding globalization provide a false sense of security regarding how global we really are. The Depth Index of Globalization Report for 2013 is an eye opener in that it reveals that the world is generally less globalized than assumed.

For example, the report states that:

  • Of all the investments made in 2012, only 9% were Foreign Direct Investments.
  • Of all the telephone minutes that were utilized in 2012, only 7% were cross-border minutes, the rest, 93%, were concentrated in local markets around the world.
  • Only 1% of registered US firms operate globally – and the majority of that 1% is Canada and Mexico.

This proves that the potential for global growth is vastly unexploited. Organizations that understand this phenomenon are well positioned to succeed in global competition.

However, it’s a two-way street, and the most successful global leaders are those who balance learning with total immersion in global work.

Ila Gandhi