China’s GDP growth is clipping along at 6%, and while the UK economy is a little weaker, the Eurozone is seeing a rise in household spending and business investment. Key measures of world trade, such as container shipping and air freight, are growing at their fastest rates since before the global economic crisis. However, there is a darker side. Although globalization has strengthened the world economy as a whole, two-thirds of all households in 25 advanced economy countries saw their incomes stagnate or decline between 2005 and 2014. It’s statistics like this that have created openings for politicians to exploit economic resentment and instate more protective polices. This in turn has created a new phase of globalization, one characterized by the push to innovate, digitize and interconnect like never before counteracted by the fierce compulsion to retract, retreat and return to simpler times. Both personally and as the chair of a global international law firm, I believe that globalization is a force for good. I don’t think a retreat into protectionism is the answer, although I agree we need to make a concerted effort to find a more sustainable model for growing the global economy. In the meantime we must help our clients contend with the new forces at play, which is what this report aims to do, focusing on four key areas: policies related to trade and investment, tax, data privacy and security, and labor and human rights. We do our best to answer the questions clients ask us most: How is this new policy, regulation or tax requirement going to affect me? How do we navigate these global opportunities and manage the associated risks? In this new era of globalization, anything can happen. Our hope is this report makes you better prepared.
Despite Brexit and the rise of President Trump’s “America First,” the global economy is doing remarkably well.
Globalization 3.0: Preparing for the next era of globalization
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