You might be surprised to learn that globalization has been in decline since 2007. And that decline only quickened with the COVID-19 pandemic.
However, the global market continues to exist. Planes and boats zip across the oceans carting goods between nations. Workers hold video conferences with colleagues in corporate branches all over the world.
So, what essential factoids do you need to store away about the global market in the 21st century? Read on to find out.
1. Today, Everything’s Connected
Global trade is highly interconnected. Economies and businesses worldwide rely on each other to get things done.
For example, Apple manufactures its computer components in China. And Nike contracts factories in Vietnam to stitch its shoes together.
This means that events in one country or region can have far-reaching consequences for others. Trends and shifts in one market can also impact markets in other countries.
For example, the invasion of Ukraine disrupted international logistics.
2. It Can Be Volatile
The global market can be highly volatile, with sudden fluctuations in currency values and stock and commodity prices. Trading internationally is not for the faint-hearted—though it can be a highly lucrative endeavor for some.
Again, these fluctuations are driven by various factors. These include (but aren’t limited to):
- Political instability
- Natural disasters
- Changes in supply and demand
Expatriated professionals in the international job market should closely monitor political and economic news to gauge how factors might affect them. Connecting with a global employment organization like bradfordjacobs.com can help.
3. There Are Lots of Untapped Markets
Once, China, India, Brazil, and Russia—the so-called BRIC countries—were considered emerging markets with lots of money-making potential. Today, it would be difficult to argue against them being key players, or at the very least, on their way to that status.
Companies seeking cheaper manufacturing and international investors are casting their eyes further afield. New acronyms are sprouting up.
For example, BENIVM stands for Bangladesh, Ethiopia, Nigeria, Indonesia, Vietnam, and Mexico, all countries with rapidly growing economies, expanding middle classes, and increasing levels of consumer spending.
4. It’s Heavily Regulated—for the Most Part
Governments and international bodies play a significant role in regulating the global market. They set policies and rules around trade and finance, work together to create and uphold international laws, and even coordinate things as seemingly mundane as shipping times.
These regulations majorly impact businesses and markets. They limit how companies, big and small, operate—sometimes for good and sometimes negatively.
Your Indispensable Primer on the Global Market
It’s essential for everyone, from business owners to high school students, to understand the global market.
Markets around the world are interconnected and change quickly. We must all pay attention to emerging markets to prepare for those changes. Companies must also stay on top of government rules and laws—especially when they affect revenue.
FRead the other articles on our blog for more insight into how our complex world ticks,
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