Over an extended historical timeframe, shifts in the distribution of output (GDP) among global markets have largely been subtle. Yet as the modern world has changed, and we have witnessed substantial changes.
Two millennia is a long timescale to view any nation, region, or economy. For centuries the Roman empire was near its peak in terms of size, inhabitants, and output (what we would today call GDP) around AD 117.
One of the largest empires in the ancient world, the Roman empire comprised 50 to 90 million inhabitants. This would amount to about 20% of the world’s population. It covered around 5 million square kilometers (nearly 2 million miles), stretching at times from northern Africa to Britain and eastward to Asia Minor. Rome was a powerhouse that dominated its economic and geographic world.
Today, a great many companies focus on expansion in key global markets that have long controlled a large share of the world’s GDP, such as China or India. What are typically called emerging markets may instead be called reemerging markets when we look back at the historical record. However, the situation remains complicated by recent events.
What’s Old is New: International GDP Among Global Markets Rebalanced
Today when companies look at development, expansion to high-growth markets is often the top priority. New technologies mean even small- and mid-sized businesses (SMEs) can now look abroad for their next step. In fact, often it has become essential for companies to expand to compete in an ever more integrated world.
Despite current changes and the continued effects of the COVID-19 pandemic on international markets, according to the world bank, global expansion is widespread and growing faster in countries with the largest shares of global GDP. This article looks at current macro trends within global expansion and explores one particularly useful solution. This is especially useful for companies looking to make the most of their expansion strategy.