• The Changing Demographics of the Global

Economy
• Hand in hand with the trend toward globalization has been a fairly dramatic
change in the demographics of the global economy over the past 30 years.
• As late as the 1960s, four stylized facts described the demographics of the
global economy.
• The first was U.S. dominance in the world economy and world trade picture.
• The second was U.S. dominance in world foreign direct investment.
• The third fact was the dominance of large, multinational U.S. firms on the
international business scene.
• The fourth was that roughly half the globe—the centrally planned
economies of the communist world—was off-limits to Western
international businesses.
All four of these facts have changed rapidly.