Every day, global trends are reshaping society and the business landscape.

Todays infographic from McKinsey Global Institute (MGI) presents a snapshot of 10 insights into how the world is changing, based on its research work from 2019.

How did we get here, and where are we going?

Globalization is making the world shrink every day, as humans and trade become increasingly connected. However, there are signs that point to a new phase of globalization that is leading to different outcomes than prior years.

Global exports are fundamentally shifting. Although manufactured goods are traded at higher volumes, certain services have grown up to three times faster.

The compound annual growth rate (CAGR, 2007-2017) for different sectors are as follows:

This has a profound impact on the mix of industries and countries involved in this shift away from goods and towards services. Asia is coming of age in this phase of the global economy.

Trade with and within Asia is rising, and shows no signs of slowing down. The regions economic might is growing rapidly, and with higher disposable incomes, consumption is growing too.

In China, there is a new dynamic at play.

Compared to other developed nations, Chinas economy is relatively closed. The country is re-balancing its focus towards domestic consumption and relying less on other countries for trade, technology, and capital.

At the same time, the rest of the world is increasingly exposed and tied to China for the same thingsand such unequal engagement has a ripple effect on everything from financial markets to flows of technology and innovation.

New technologies like artificial intelligence are sparking new opportunities, but they also raise questions about the future of work across geographies and gender.

As the costs of devices and data plummet, Indias digital adoption is surgingit closely competes with China for the highest digital population across everything from smartphone ownership to social media users.

As mass adoption of digital technologies continues, it is poised to add significant economic value to the Indian economy.

Companies worldwide are also integrating new technologieschanging the nature of work itself.

By 2030, talent and investment in the U.S. will be concentrated in a few regionswith 60% of job growth coming from just 25 hubs.

These are just some examples of places which see double-digit potential net job growth by 2030. However, all regions will face unique challenges in the next decade.

Globally, women and men are at similar risk of losing their jobs to automation by 2030.

*FTE: full time equivalent. Based on midpoint automation scenario.

While everyone needs to adapt in the age of automation, women face more barriers. They spend up to 1.1 trillion hours on unpaid care work, nearly three times that of men (400 billion hours).

Women are also often in lower-paid roles or male-dominated professions. Additionally, many women have less access to digital technology, and limited flexibility to pursue education. These factors make it harder for women to catch up and bridge the gap left behind by automation.

Its clear that while technology generates opportunities, it also creates new social challenges. Low- and middle-income households face stagnating incomes, higher debt, and rising basic costs.

The U.S. labor share of income has been dropping for yearsbut of this decline has occurred since 2000.

According to McKinsey Global Institute, boom-bust commodity cycles and rising depreciation are the main factors behind this trend, more so than commonly-cited automation or globalization.

Stagnating incomes mean less purchasing power, while the cost of basics are sharply rising.

The global inequality gap has narrowed, but within developed economies, it has actually increased.

Technology and globalization have made many discretionary goods cheaper. However, basic costs such as education, housing, and healthcare have ballooned compared to the rate of inflation over the past decade.

With wages stagnating, the higher costs for basics have eaten into disposable incomes in many mature economies.

Global trends drastically influence how companies compete with one another, transforming corporate dynamics worldwide.

In just two decades, the distribution of economic profits has been growing increasingly wider. The top 10% of companies (>$1 billion in revenue) brings in an ever-larger share of total profits, while the losses of the bottom 10% share deepen.

*In 2016 dollars. Considers corporations with $1 billion average sales (inflation-adjusted). Sample sizes: 2,450 companies (19961997) and 5,750 companies (20142016).

In essence, the bottom 10% destroy as much value as the top 10% createand it has only intensified in 20 years.

Latin America best exemplifies this corporate trend of companies thriving versus surviving.

Compared to similar economies, Latin American countries lack mid-size companies with over $50M in revenue. The Latin American average for firms per $1T GDP is 65 firms, while 100 firms is the benchmark average.

While Asias share of the largest firms is widely distributed across countries, Latin American enterprises are lagging behind.

CEOs and leaders will need to adapt to the new age of disruptionand quickly. To become a 21st century company, they must ask 10 crucial questions about how they operate in an increasingly complex world:

As the 10 insights suggest, global trends are profoundly altering the course of our future. Their impact varies greatly depending on demographics and region.

Everyonebusiness leaders, policy makers, and individuals worldwidewill need to adapt to the realities of a world in transformation.

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