The Return of Globalization
October 21, 2010 / Kati Suominen, Gary Hufbauer
Foreign Policy
As the G-20 finance ministers gather in South Korea this weekend in advance of November's big meeting, they will surely notice that globalization is back -- almost. The trajectory of world trade over the last two years looks V-shaped: a drop of 12.2 percent in 2009 followed by a projected gain of 13.5 percent in 2010. Cross-border financial flows are recovering: After more than halving from $1.3 trillion in 2007 to $500 billion in 2009, net portfolio flows to emerging markets will rise to some $700 billion this year. Global foreign direct investment is soaring to $1.2 trillion this year, after plunging from $2 trillion in 2007 to $1 trillion in 2009.
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