Global Transformations

Question 1

why are transformations crucial for business survival? (7)

Answer 1

1. aging workforce
2. rising world population
3. productivity and GDP growth are slowing down and decreasing
4. growing middle class (the driver of consumer preferences = they have money to spend + there is enough to shift the market)
5. covid
6. global warning (primary goods prices increase, secondary goods prices decrease)

Question 2

def informatisation

Answer 2

use of computers

Question 3

def digitalisation

Answer 3

use of robots (programs) to increase efficiency

Question 4

def digital transformation

Answer 4

special organisation and mindset based on data

Question 5

why is digital transformation inevitable?

Answer 5

bc the efficiency in automated companies is so much higher and the un-automated ones will be squeezed out

Question 6

state 2 characteristics of digital transformation

Answer 6

1. new business models are being made with it (efficiency above growth and innovation)
2. key growth-promoting factor despite hard-to-assess impact (initial high investment) (the more developed the economy is, the higher the positive impact - for first movers)

Question 7

what are the 4 challenges of digital transformation?

Answer 7

1. initial period of implementation gives impression that there is less jobs (which is true, but later on they are gained back in diff ways)
2. increasing taxes on digitalised parts of the company
3. highly production-oriented countries are most vulnerable to automation (most people lose jobs and they cannot gain them back due to low education)
4. all jobs will be affected, not only the automated ones

Question 8

is the impact of digital transformations positive for all countries that move into it?

Answer 8

no, only for first-comers. after that, its ambiguous

Question 9

what is the expected impact of digital transofrmation on Global Value Chains (GVC)?

Answer 9

structural shifts - more localised production (to get closer to end markets) -> back towards developED countries

Question 10

what is the most important factor for companies when they decide on location?

Answer 10

skilled local talent

Question 11

where is the highest share of jobs at risk due to covid (in the world)?

Answer 11

japan, then southern Europe (Greece, Spain)

Question 12

what has been covid’s short term impact? (4)

Answer 12

• reduced economic activity
• increased competitive pressure
• reduced private sector investments
• increased inequalities

Question 13

which two trends has covid accelerated?

Answer 13

1. digitalisation (automatisation)

2. GVC localisation (reshoring or nearshoring)(end-to-end visibility)

Question 14

which three new structural effects did covid bring?

Answer 14

1. new consumption patterns
2. increased role of public sector
3. increased corporate social responsibility

Question 15

which changes (regarding territorial development) happened in Europe because of EU integration and regional policies?

Answer 15

EU took areas that were suffering and enabled them to compete on equal footing (lowering inequalities within countries)

Question 16

what is the consequence of regional inequalities?

Answer 16

populism within the underdeveloped regions, voting against the developed regions

Question 17

what is most likely to happen in the future regarding the geographical concentration of jobs?

Answer 17

they will focus on metropolitan areas, where there is a lot of people. Everything else will slowly become deserted.

Question 18

what actions should companies take in the future?

Answer 18

1. focus on growth
2. proactive management
3. invest in knowledge (across the GVCs)
4. shift skills of workers to automation technologies

Question 19

which driver is even more important for innovation in SMEs than R&D?

Answer 19

collaboration between firms