Urban world: The shifting global business landscape
Emerging markets are changing where and how the world does business. For
the last three decades, they have been a source of low-cost but
increasingly skilled labor. Their fast-growing cities are filled with
millions of new and increasingly prosperous consumers, who provide a new
growth market for global corporations at a time when much of the
developed world faces slower growth as a result of aging. But the number
of large companies from the emerging world will rise, as well,
according to a new report from the McKinsey Global Institute (MGI). This
powerful wave of new companies could profoundly alter long-established
competitive dynamics around the world.
Our research shows that the emerging economies’ share of Fortune Global
500 companies will probably jump to more than 45 percent by 2025, up
from just 5 percent in 2000 (Exhibit 1). That’s because while
three-quarters of the world’s 8,000 companies with annual revenue of $1
billion or more are today based in developed economies, we forecast that
an additional 7,000 could reach that size in little more than a
decade—and 70 percent of them will most likely come from emerging
markets.
To put this dramatic shift in the balance of global corporate power in
perspective, remember that many of the world’s largest companies have
maintained their current status for generations: more than 40 percent of
the 150 Western European companies in last year’s Fortune Global 500
had been founded before 1900.
A Report By Mckinsey
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