Three Phases of Modern Globalization
The evolution of globalization over the last three decades can be segmented into three phases: The Golden Era, Nationalist Backlash and the Dual-Track Era.
INTRODUCTION
In national elections around the world, one theme dominated almost universally: dissatisfaction with a global economy that favors others over us. On the surface, swirling headlines around tariffs and fracturing supply chains would suggest the high-speed globalization train has been utterly derailed. However, the world has entered a new era where globalization has essentially splintered into two distinct tracks.
- Track 1: A narrow set of industries deemed to be of vital national security or strategic importance, from energy to semiconductors and AI. This track of globalization has sharply decelerated, if not come to a sputtering halt altogether.
- Track 2: A vast array of cross-border goods and services such as apparel and consumer electronics, gets less attention in sensationalist media stories but still represents a majority of global GDP.
EXPLORE THE RESEARCH
Sectors Caught in the Crosshairs of a New Era of Globalization
In sectors at the heart of great power rivalry and protectionist industrial policy, a new set of investment opportunities and risks are emerging.
Portfolio Implications
Four crossportfolio implications for CIOs to consider for the impact of the new dual-track era of globalization.
Related Content
s.5 ep.2: The New Arms Race - Supply Chains, Data, and National Security
Surging AI demand, security risks, and a race for technological supremacy among the world’s superpowers are propelling new investment opportunities.
German Elections 2025
Germany is entering a pivotal moment in its political and economic landscape. Discover the strategic implications for investors after their recent election.
Resilient Investing Amid Geopolitical Uncertainty
PGIM’s survey found that geopolitical risk and elections are top of mind for investors. Explore strategies to mitigate risk and capture opportunities.