In recent decades, “globalisation” has been the focus of much economic commentary. Love it or hate it, most observers agree that increasing integration of world markets is a practically unstoppable trend to which consumers, workers, companies and nations must adjust.

But today we are seeing signs of a counter-trend – an emerging set of pressures that may slow or even reverse, at least temporarily, the juggernaut of globalisation. We might call this new trend “localisation,” and it is one that businesses need to take seriously.

Consider some of the causes of the emergence of localisation. Since the 1970s it has become possible to ship goods around the world with increasing speed and efficiency, providing companies with lower labour costs and consumers with easy access to foreign products. Now, however, opposing forces are making themselves felt. Rising energy prices have dramatically increased the cost of long-haul shipping, while concern over climate change has turned a spotlight on its baleful environmental effects.

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