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The world is entering third phase of globalization

Staff writer |
The world is entering a third phase of globalization that will boost trade, change the way companies work and improve the quality of life of millions of people, according to HSBC.

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"Trade Winds: shaping the future of international business" examines the key trade and business trends of the past 150 years and looks ahead to 2050.

It forecasts that total goods exports will reach $68.5 trillion by 2050 – nearly four times the value of global exports in 2015 and more than 150 times that traded in 1950.

Developments in technology, public policy, operations and logistics will bring many benefits, according to the report: “This third wave of globalization will take millions of people out of poverty, raise income levels and improve quality of life. Emerging economies will increasingly catch up with mature economies as economic prosperity is spread more evenly.

“For businesses there will be new opportunities – these include new ways of working, new business models and new skills requirements. Physical borders will become less important and how we define trade will change.”

Asia is expected to be a big beneficiary of these changes, with the region’s share of global exports predicted to reach 46 per cent in 2050, compared with 33 per cent in 2015. That shift is likely to see China extend its lead as the world’s top exporter, while India exerts increased power.

Western Europe and North America are expected to see their shares of global exports decline but in absolute terms they will be larger than today.

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