The digital flows are the new drivers of the economies for most countries. It is in fact surpassing the tradition trade of goods, according to McKinsey Global Institute (MGI) report, Digital globalization: The new era of global flows. Some cynics pointed out that globalization are flattening out! However, nothing can be further from the truth that it can wane in the foreseeable future.
For example, UK pop star, Adele has posted a track of hers on YouTube, which has seen 15 million downloads. She did not have to distribute her single to the music shops around the world that would have cost a sizeable amount to the record company. Thus, she became s a huge beneficiary at a minimum cost. In fact, the digital flow portends greater need of knowledge and creativity to succeed rather than capital and labor. This is the reason the share of large multinational companies doing trade in US has declined from 84 percent in 1977 to around 50 percent in 2013. The trade flows now are dominated by the digital flows, where even the small startups can compete with a multinational company. A survey revealed that 86 percent of the technology startups have conducted one international transaction at the minimum. The B2B e-commerce across border has been expanding to an estimated $1.8 to $2.1 trillion per year.
Along with the companies, the individuals benefit too in the wake of the digital flows. There are 400 million people who have posted their professional profile on LinkedIn. Their skills and competencies are showcased in over 200 nations. A person with talent and skills can also promote himself across the world via Facebook, Twitter et al, at a minimum cost. The freelancing sites such as, Upwork, Freelancer.com, and Guru has 40 million people registered to it. There are 900 million international connections on social media. Thus, a writer, who earlier could have reached people living only in his own city, can reach the entire globe now.
It is without doubt that today’s success comes from being digitally literate and being well connected. The nations that have emphasized on being digitally connected are reaping benefits from it. This corroborates the need of investing in infrastructure, skills and education more than ever before. The digital flow is gold mine with enough space for most people to be beneficiary out of it.