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McKinsey Insights: Understand the Global Trade Landscape


McKinsey Insights analyzes 23 industry value chains spanning 43 countries to understand how trade, production, and participation has changed since 1995. An essential article to understand how globalization has affected the landscape.

Here are the 5 main opportunities and challenges that SMEs should know to be prepared for the following few years:

  1. Global value chains are undergoing five structural shifts

  2. One of the forces reshaping global value chains is a change in the geography of global demand

  3. The rise of domestic supply chains in China and other emerging economies has also decreased global trade intensity

  4. New technologies are changing costs across global value chains

  5. Given the shifts in value chains, companies need to reevaluate their strategies for operating globally

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