Globalization reshaped the world economy over the past four decades linking countries through the free flow of capital, people, and goods to bolster growth and—at least in theory—engender geopolitical harmony. Along the way, it built China into an economic powerhouse, pulled more than a billion people out of poverty, and created a burgeoning middle-class hungry for U.S. goods.

As the world grew closer, U.S. companies tapped low-cost labor abroad to create efficient global supply chains, reducing the need for warehouses filled with inventory and contributing to record profits and a free flow of cheap goods that helped keep a lid on inflation

Just in time inventory was the norm now that is changing to Just in case. Friendly shoring is replacing offshoring in riskier countries to more balanced ones that have more stability and are conflict free.

Rise of warehouse, technologies that move things faster, IOT, block chain are all making an impact with increasing spending. Incentives from governments to promote manufacturing within its borders is on the upswing.

US companies primarily deliver their goods and services to foreign customers via investment and affiliate sales, not through exports. That business is still strong

Going global became the mantra of many U.S. companies as the world of the late 20th century was unlocked by falling trade barriers, investment reforms, industry liberalization, falling communications and transportation costs, and the proliferation of regional trading blocs. These structural dynamics were complemented by seminal, one-off events such as the opening of China, economic reforms in India, the enlargement of the European Union, and the collapse of communism.

Given all of the above, the demise of globalization—if true—could not come at a less propitious time for U.S. businesses. Confronting one of the tightest labor markets in decades, the last thing U.S. companies need is less access to foreign talent. Short of critical raw materials, U.S. companies can’t afford to be locked out of certain resource-producing markets. And with America’s share of global personal consumption in a structural decline, the future earnings growth of many multinationals hinges on access to consumers in both the developed and developing nations. In the end, globalization has been hugely bullish for U.S. businesses—and very beneficial to the U.S. economy in general. Post covid era has certainly shaped this topic or accelerated it forcing both governments, multinationals and those impacted by globalization to take notice and adapt.

Outsourcing certainly has undergone changes due to the trends with globalization post covid era. The challenges in moving people where needed, inflated costs, insourcing trends, talent shortage, rising interest rates, changes in technology landscape – are some of the key factors.