Globalisation is the great economic theme of the past three decades, affecting not just business but much of the world as a whole. Behind it are technical factors such as the revolution in information and communications technology, and market-oriented liberalisation – principally of trade and finance but also to some extent of movement of people.
Globalisation has created huge increases in prosperity, notably in emerging markets, above all in China. It has reshaped the activities of business, creating integrated chains of innovation, production, marketing and distribution. Yet it has also caused huge stresses as production has shifted to low-wage economies, “winner-takes-all” markets have increased inequality and destabilising speculation has unleashed huge global financial crises.
In response, the financial sector is being re-regulated. New currents in post-crisis regulation risk balkanising the global banking industry.