Will Hong Kong and Shanghai emerge as the pre-eminent world financial centres?
There have been three basic stages to globalisation. The first was when companies in the West outsourced activities to other countries because of the cheapness of doing so. The second phase of globalisation was when the West saw fast growing markets as an opportunity to sell more of what it produced; the dream of 1.3 billion Chinese consumers.
Now, we are in the third wave of globalisation. This is when companies in the so-called emerging markets, or what I prefer to call the growth economies, are moving up the value chain. They are looking to develop their brands and technology. Some are coming to the West, acquiring companies and moving into developed markets.