Strategies for Adapting to Economic Globalization

Had an incredible week engaging with government and private sector stakeholders at the International Monetary Fund and The World Bank Group Spring meeting. Sharing key insights below from my talk and my book on AI for DPI: - **Upskilling & Reskilling in AI**: Governments worldwide should prioritize massive investments in upskilling and reskilling to leverage the potential of AI effectively. - **AI as an Integrated Team Member**: Recognize AI not just as a tool or technology but as an integral part of the team. - **Job Displacement and Creation**: Anticipate job displacement in labor markets before the creation of new opportunities by AI's 10X productivity boost. - **Preparing for a Deflationary Economy**: Learn from Japan's experience with a deflationary economy and negative interest rates due to AI's productivity impact. - **Shift in Manufacturing**: Expect manufacturing to return to developed nations as full-scale automation reduces the significance of labor arbitrage. - **Investing in Circular Economy and Local Manufacturing**: Offset the decline in global trade by investing in circular economy practices and local manufacturing. - **Universal Basic Income (UBI) Considerations**: During the transition period, contemplate implementing UBI and potentially adjusting taxes to include levies on automation to balance the impact on the labor force. #AI #FutureOfWork #EconomicTransition

It is now clear that peak globalization is over and that the upcoming decade will be defined by mercantilist industrial policy on all sides. While we can argue about what tools of industry policy are appropriate for the US and how they should be applied, the bottom line is that we are officially in a new era. Leaders and supply chain execs need to quickly move past “what is happening” and “why is this happening” to “what do I need to do about this to ensure the success of my business for the next 25 years.” These are some of the best practices we are seeing:  • Wait and see is the wrong strategy. Speed to relationship with new suppliers is critical, especially in categories where there is limited domestic capacity.  • Lean in to relationships with your current US suppliers, they are getting more inbound demand and you need to stay a priority. • Dual source or align secondary sources of supply on as many components as possible. Single-source is too big of a risk, even for your US suppliers. • Weigh production ramp lead times vs. total cost of ownership with overseas purchases to prioritize the highest-impact work transfers. • Look at your team and processes to ensure you have the ability to get quotes from multiple suppliers quickly. Agility will be key as tariff rates continue to shift. Don’t miss the moment, market share will be won and lost in the next 3-6 months. Read our full perspective here: https://lnkd.in/gJHXYFcF

Building global-first companies from Europe (post-globalization edition) 🌍 Even if the world is decoupling, bits will travel around the world before border patrol can blink. And my recommendation remains: build and launch with a global mindset from day one. The best product remains a digital service that can be used by any person on the planet with an internet connection. Ideally at least twice a day 🪥 Tactics for early international user acquisition: 🚀 Launch globally: Debut on global platforms (Product Hunt, Hacker News) to reach worldwide users. Engage niche communities (Subreddits, Slack, messenger groups) to find early adopters as local champions. 🗣 Speak their language: English first. But AI removes all excuses for translation – and ~40% of people skip products not in their native language. Global product & pricing strategy: 🌐 Build for anywhere: i18n best practices will let languages, currencies, and settings work seamlessly. Study what works. 💰 Price for the world: Purchasing power differs by country. Netflix: ~$15 US vs ~$3 India. Regional pricing in local currency. Offer global payment methods. Data, privacy & regulatory issues: ☁️ Poly-cloud: consider setups where you can keep PII and other sensitive information separate tom comply with data regulations. ⚖️ Jurisdiction: put the top-co in the business-friendliest jurisdiction you can (it's Texas, fyi). Navigate local regulation on as-needed basis. While our nations become more nationalist, that doesn't mean our companies need to become national champions. Corporate resilience can easily take the form of large customers numbers distributed around the world, making money in lots of currencies, and remaining virtual instead of physical. What strategies are you using to go global? Share your experience below! If this was interesting, consider sharing it with another founder! 🤝