The New Global Road Map

2

Globalization and Shocks

The previous chapter established that globalization is neither as advanced as many presume nor so negligible that prudent managers can limit their attention to within-country conditions. The law of semiglobalization affirmed that national borders still matter, while the law of distance emphasized that international activity continues to be constrained by cultural, administrative, geographic, and, often, economic distance. We also saw that recognizing those patterns can help businesses avoid costly missteps. But the discussion was based, as were the two laws, on the data to date. What might yet happen as a result of recent shocks, like the Brexit and Trump votes, or ones yet to come?

The standard approach to answering ...