How our interconnected world is changing - The McKinsey Podcast Recap

Podcast: The McKinsey Podcast

Published: 2023-02-09

Duration: 2105

Guests: Olivia White, Fernando Tenenbaum

What Happened

Recent research from the McKinsey Global Institute reveals that while globalization is not retreating, it is evolving. Olivia White highlights that major multinational corporations significantly influence global flows, particularly those of knowledge. The flow of goods, after growing at twice the rate of GDP for over 20 years, has now leveled off but remains in sync with GDP growth.

The flow of ideas, including intellectual property and data, is currently outpacing the growth of goods. No region globally is self-sufficient; each relies on others for at least 25% of a critical flow. For example, China imports over 25% of its minerals from countries like Australia and Brazil, while Europe once depended on Russia for more than 50% of its energy needs.

Service flows are expanding at a rate of about 6% annually, which is faster than the growth of resource flows. Meanwhile, international student flows are recovering after a pandemic-induced decline. Significant jumps were seen in resource and manufactured goods flows in 2020 and 2021, indicative of shifting global trade dynamics.

Olivia White notes that despite the notion of regionalization, interdependencies remain critical, with multinationals accounting for about 30% of trade and 60% of exports. These corporations are responsible for 82% of exports in knowledge-intensive goods, underscoring the importance of global integration.

Fernando Tenenbaum, CFO of AB InBev, discusses the brewery's resilience amid global disruptions. Despite economic challenges, beer sales have remained robust, and the company boasts a strong financial position with no debt maturing in the next three years.

AB InBev has accelerated its digital transformation, particularly during the pandemic, and sustainability is a core aspect of its business model. The company focuses on local sourcing and efficient processes, with returnable glass bottles being the most sustainable packaging option.

The company has also been innovative with its B2B platform, significantly increasing customer interaction and expanding its marketplace for third-party products. Fernando Tenenbaum emphasizes the importance of having different scenarios, agility in decision-making, and an engaged team to adapt to changing market conditions.

Key Insights