It is the season of lists: best movies, best books and on and on. Since I teach and write on globalization and international political economy, I thought I would continue a tradition I started several years ago of creating a different type of list: a geo-political-economic list -- a list of globalization's top five trends for the year.
Investors have lost faith in Brazil, and rightfully so. The currency has lost 36% of its value against the U.S. dollar this year, plunging nearly 7% in the last week alone. Yields on its bond issues are spiking, as investors demand higher and higher rates to loan Brazil or Brazilian companies money.
The BRICS nations convened in the Russian city of Ufa for the BRICS Summit last week to discuss cooperation on international and regional issues of common interest. The BRICS meeting was held in conjunction with the Shanghai Cooperation Organization and represents the seventh formal meeting of the BRICS nations. The meetings discussed several issues of central importance to China. While China's role in the BRICS alliance may be viewed as an attempt to build up its own power outside of U.S.-dominated institutions, we believe this perspective is simplistic.
MOSCOW -- Countries like India and Brazil -- unlike, say, Germany and Japan a century ago -- are not seeking to overturn the world order. All they want is a place at the high table. Barring that, they have little choice but to build their own -- though India, Brazil and South Africa have reason to wonder if a Chinese-led world order would be an improvement on the current one.
In 2013, McKinsey & Company predicted that by 2025 almost 230 Fortune Global 500 companies would be based in cities in the emerging markets. Whilst I can't yet comment on whether this prediction is likely to come true, it is interesting to look at how companies are shifting their focus to these developing countries.