The Rundown #10 - Decelerating Globalization
Vojta Koutnik, Head of Educational Travel
March 1st
Economists and watchdogs have reported an emerging trend of late, the slowing and deceleration of economic globalization. So I took over this month’s Rundown to delve into what’s caused this shift, and most importantly for us in the educational travel industry, how we can reflect this topic in our programs.
When putting our study programs together, the aim is always to equip the participants with a first-hand snapshot of the challenges and opportunities of international business. Be that uncovering the legacy of apartheid in South Africa, understanding the byzantine institutions of the EU single market or navigating the politico-economic turbulences of Latin America. The overarching focus is always what’s shaping business in that destination.
When I joined ISP in 2013, the backdrop for the stories we’ve been telling through our programs was the seemingly unstoppable force of globalization. Big corporations were scouring the globe for new markets and efficiencies and developing nations welcomed them with open arms seeking to expand their economies by building massive export industries. But then came the pandemic, and when travel returned, the goalposts had shifted.
What we see now are companies seeking efficiencies and a more resilient supply chain. The issue of climate change and geopolitical tensions remain present, forcing many businesses to rethink their global strategies. In fact, industrial policies are coming back into vogue, protectionist subsidy schemes are being implemented and the tighter screening of inbound and outbound foreign investment is slowing globalization down.
“The sudden enthusiasm for industrial policy in America and elsewhere epitomises the trend. In 2022 Congress passed two lavish bills aiming to bolster domestic industry… The chips Act, which provides $52bn of incentives for the semiconductor industry, attempts to reverse a multi-decade decline in America’s share of chip manufacturing.”
Considering the possibility of these trends continuing, the potential outcomes will be worth examining. Businesses will likely have to adapt to these changes and emerging markets could be significantly affected. There may even be a return to a trade bloc mentality, similar to the Cold War era, and governments may adopt a more interventionist approach towards businesses. One thing’s for sure, we’re eager to explore the impact of these changes in upcoming and future study programs.
How can this topic be woven into a study program?
Well, what we’ll see is an even greater need for cross-cultural knowledge sharing if these trends continue, as the world of international business might look a little different. We’ll be sure to invite relevant speakers to discuss how they’re adjusting to and navigating this new reality.
We’d include visits to companies from the most-affected industries like clean energy, semiconductors and EV-related fields, biotechnology, AI and quantum computing. These sectors see significant changes caused by the policies and subsidiary distribution as more countries strive to domesticate the most lucrative, future-proof industries.
Adding visits to manufacturing companies would give students a first-hand look at supply chain management and how post-pandemic economics is impacting the business’s strategies.
And of course, visits to embassies and chambers of commerce would offer crucial insights and briefings from the sources that understand these policies best.
What might that study program look like?
Now that we’ve identified the topic and established the framework, you can take a look at a sample itinerary that puts these trends into practice. We’ve created a dual-destination, week-long trip itinerary that you can easily download below. This itinerary shows how our Methodology and expertise can translate a current trend into an expertly-crafted proposal, you’ll see that the academic events directly reflect a focus on the slowdown and challenges of economic globalization. So, if you have a particular focus in mind, we’d be delighted to discuss it further and create your very own personalized proposal, completely free of charge.
Vojta Koutnik
Head of Educational Travel
koutnik@studyprograms.com