Brexit and Your Business

With the right wing prevailing in Austria; other right-wing parties gaining influence in Germany, France, and the Netherlands; Donald Trump becoming the presumptive Republican nominee here at home; and the U.K. voting to exit the European Union, we are seeing cases all around the world where nationalism rejects globalism and countries’ electorates are looking inward.
This is a global movement—a seismic shift. It’s not short-term.
The reaction of populist sentiment has swung decisively against open borders to national protectionism, and this will have a substantial impact on trade, multinational corporate growth, and companies that seek to trim costs by relying on immigrant workers.
It will also clobber outsourcing efforts.
The world has changed.

There is also a global tide against wealth created and sustained by international efforts—and a move toward concentrating and (re)distributing wealth within national borders.
This is not just happening in the U.S.
Protests are rising as nations—notably France—try to reform sclerotic labor practices to create better international competition.
If your company is active globally or has customers who are, this will ultimately affect your business.
Be aware, and be ready.
Change has already begun.

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Pete Gioia is an economist with CBIA. Follow him on Twitter @CTEconomist.