Summary of Leading Across New Borders

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International management consultants Ernest Gundling, Christie Caldwell and Karen Cvitkovich explain changes they foresee in the global economy. They find that economic power is shifting from the Northern and Western portions of the globe to the East and South, which will skyrocket. In this report, they explore how leaders must prepare multinational firms for this emerging economic reality. The document’s layout, charts, lists, examples and easy-to-read format make it nicely accessible. getAbstract recommends this informative manual to executives leading multinationals in a changing global business environment.

About the Authors

Cofounder Ernest Gundling, PhD, managers Aperian Global, an international advisory firm, where Christie Caldwell directs consulting and Karen Cvitkovich is a senior consultant.



A Global Economic Power Shift

The Northern and the Western regions of the globe have long held economic power. Seismic shifts are now moving economic power to the globe’s East and South. This shift – underway for decades – encompasses political, demographic and cultural transformations.

Based on “gross domestic product purchasing power parity,” China, not the United States, now has the world’s largest economy. By 2030, China will be the global economic leader. By 2050, India will be one of the world’s three dominant economies, along with the US and China. By 2025, nearly half of the world’s firms that earn more than a billion dollars will have headquarters in less-developed nations. This contrasts with the year 2000, when “95% of the Fortune Global 500 was headquartered in the developed world.”

China now manufactures more automobiles than any other country. The Chinese automotive market is now the biggest in the world. Although China has experienced slowing economic growth recently, its growth remains two or three times that of Europe and the US.

When the G7 started in the 1970s, the world’s seven most heavily industrialized nations included...

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