Globalization has reshaped our world and driven unprecedented economic growth. From 1995 to 2023, average growth in global trade was 5.8% a year as nations became increasingly interconnected.
However, globalization is not without its problems. Benefits are often unevenly distributed, widening the development gap between regions and exacerbating imbalances between developed and developing nations.
Developed nations have experienced some disadvantages, as well as gains. Offshoring hollowed out manufacturing capacity in some countries when facilities relocated to lower-cost regions. According to the UK Innovation Report 2025, G7 countries have seen their combined share of global manufacturing exports drop from 51.9% in 2000 to 30% in 2022. This downturn has led to job losses and weaker supply chains, and exacerbated concerns about economic security.
In developing countries, low-end manufacturing drives economic growth and employment opportunities. However, long-term vision is essential to make sure these countries are not locked into the low end of the industrial chain, limiting their potential for growth.
If the production of core technologies and high-value R&D remains in developed nations, manufacturing centres may struggle to move up the value chain. For example, some South-East Asian countries, including Vietnam and Malaysia, have become production bases for electronics, but have made little headway into core technology fields.
These imbalances threaten the legitimacy and sustainability of globalization. That’s where multinational corporations (MNCs) can make a big difference.
Lifting all the boats
We’re witnessing a period of dramatic adjustment in international trade, as tariffs and geopolitical tensions disrupt or reorient supply chains. However, despite these upheavals, globalization is unlikely to abate. History has shown that even the most challenging twists and turns cannot put a brake on its forward momentum.
As economies around the world restructure, MNCs must rethink their medium- to long-term plans. We should seize the opportunity to take a more intentional, well-informed approach and steer globalization in a direction that balances efficiency with fairness. It must be inclusive, not extractive.
By prioritizing equity, as well as growth and efficiency, we can ensure benefits are shared, and that the proverbial rising tide lifts all boats.
Think local and build capacity
To achieve the long-term goal of equitable globalization, we need to implement the right strategies now.
Localization is critical. MNCs can achieve greater levels of symbiosis with local communities by decentralizing core capabilities and R&D, and implementing functions within local markets.
TCL’s localization strategy has achieved “win-win” results by establishing multi-link industrial chains in key markets and regions. For example, we have built a panel display module factory in Vietnam to supply our TV manufacturing facilities there. By positioning this supply-chain link locally, we diversify the industrial ecosystem and advance the country’s technological capabilities. Our largest factory in Vietnam, which supplies markets in South-East Asia and North America, has the capacity to produce 8 million TV units a year, with a value of $1 billion.
In Poland, our intelligent manufacturing base has an annual production capacity of 5 million units and incorporates an R&D centre. This has localized the entire industrial chain in the heart of the European continent, helping to significantly increase TCL’s revenue in Europe.
Another key lever is building industrial capacity, often via joint ventures and technology transfers. Collaborations support enterprise stability and industrial transformation of the host country, boosting employment for local communities and tax revenues for governments.
Going beyond simple business goals, long-term relationships that foster trust and collaboration help to achieve mutual growth in ways that are less quantifiable but have lasting value. Our experiences have emphasized the positive impacts. For example, our 20-year-long partnership with Argentinian home appliance and consumer electronics firm Radio Victoria has given us the benefit of the company’s local expertise and market knowledge, while enabling them to expand their technology adoption and product portfolio.
Additionally, MNCs must add social and environmental value to the countries in which they operate. According to the 2024 EY Africa Attractiveness Report, foreign direct investment led to the creation of 194,000 jobs across Africa in 2023. MNCs including IBM, Hewlett-Packard, Google and Microsoft are helping to make Africa a burgeoning hub for business and technology services.
Investment in local communities by MNCs can go far beyond employment, with sustainability a top priority. Genuine commitments to green, low-carbon production and sustainable development are essential components of a responsible business strategy.
The spirit of the Olympic Games
Perhaps the greatest symbol of international community is the Olympic Games. At TCL, we are leaning into our commitment to responsible globalization with our role as a Worldwide Olympic Partner. This relationship aligns with our perspective that sustainable globalization must balance efficiency and growth with fairness, equity and environmental protection.
Our company has adopted green manufacturing processes and is committed to reducing carbon emissions and water usage, in alignment with the International Olympic Committee’s sustainable development goals. We also strive to advance gender equality and inclusion. For example, TCL has partnered with FIBA, the global basketball governing body, since 2018. We have supported more than 2,000 events as well as FIBA’s efforts to recruit more school-age female players through a range of activities.
Much like the Olympics, MNCs are uniquely positioned to connect communities to global goals. They can lead the world’s transformation by fostering local partnerships, empowering communities, and upholding environmental and social responsibilities.
By embracing localization and long-term vision, businesses can ensure globalization leads to inclusive and sustainable progress. The mission of today’s entrepreneurs is to guide globalization into a new era: one that distributes benefits fairly – and lifts all boats.
