![]() Global flows of all types support growth by raising productivity, and data flows are amplifying this effect by broadening participation and creating more efficient markets. This is a moment for companies to rethink their organizational structures, products, assets, and competitors. Using digital platforms and tools, they can sell in fast-growing markets while keeping virtual teams connected in real time. In this increasingly digital era of globalization, large companies can manage their international operations in a leaner, more efficient ways. Digital platforms for both traditional employment and freelance assignments are beginning to create a more global labor market. Some 900 million people have international connections on social media, and 360 million take part in cross-border e-commerce. Individuals are using global digital platforms to learn, find work, showcase their talent, and build personal networks. Virtually every type of cross-border transaction now has a digital component. In addition to transmitting valuable streams of information and ideas in their own right, data flows enable the movement of goods, services, finance, and people. It is projected to increase by an additional nine times over the next five years as flows of information, searches, communication, video, transactions, and intracompany traffic continue to surge. The amount of cross-border bandwidth that is used has grown 45 times larger since 2005. The world is more connected than ever, but the nature of its connections has changed in a fundamental way. And although this shift makes it possible for companies to reach international markets with less capital-intensive business models, it poses new risks and policy challenges as well. Remarkably, digital flows-which were practically nonexistent just 15 years ago-now exert a larger impact on GDP growth than the centuries-old trade in goods, according to a new McKinsey Global Institute (MGI) report, Digital globalization: The new era of global flows. Exploding digital flows in a deeply connected world
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