The Shifting Global Business Landscape

by The Bearing Wave on September 10, 2015

imageEmerging markets are changing where and how the world does business. For the last three decades, emerging markets have been a source of low-cost but increasingly skilled labour. Their fast-growing cities are filled with millions of new and increasingly prosperous consumers, who provide a new growth market for global corporations at a time when much of the developed world faces slower growth as a result of aging.

But the number of large companies from the emerging world will rise, as well, according to a report from the McKinsey Global Institute (MGI). This powerful wave of new companies will profoundly alter long-established competitive dynamics around the world.

According to MGI,  emerging economies’ share of Fortune Global 500 companies will jump to more than 45 percent by 2025, up from just 5 percent in 2000. That is because while three-quarters of the world’s 8,000 companies with annual revenue of $1 billion or more are today based in developed economies, MGI´s forecast shows that an additional 7,000 could reach that size in little more than a decade, and 70 percent of them will most likely come from emerging markets.

Global Fortune 500 by location

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