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Fragmented Globalization

The reversal of decades of economic integration will leave the global economy with higher inflation and reduced growth potential. In this new era, governments, companies, and long-term investors will need to incorporate more sophisticated geopolitical and sociopolitical analyses into their strategies.

CAMBRIDGE – For three decades, businesses and governments around the world operated under the assumption that economic and financial globalization will continue apace. As the international order has come under strain in recent years, however, the concept of deglobalization – the delinking of trade and investment – has increasingly gained traction with households, companies, and governments. But the available data suggest that globalization is not ending so much as it is changing.