Indexing a World in Flux: MarketVector’s Economic Exposure Index Family

Joy Yang

June 21, 2023

Globalization is in flux – oscillating between globalization and de-globalization forces, with de-globalization currently the prevailing trend. As more nations look to onshore industries, and geo-political trade tensions are on the rise, this trend is not slowing down. These activities will have a divergent impact on multinational global economic companies versus domestic companies.

Multinational global economic companies that have been operating in a globalized economy will face challenges as the trend of slowbalization and onshoring continues. These companies will need to adapt their business models to account for the changing landscape. They may need to move some of their operations back to their home countries, or they may need to find new ways to source their materials and labor.

Domestic companies, on the other hand, may benefit from the slowbalization and onshoring of activities. These companies will have a greater opportunity to compete with multinational global economic companies. Additionally, domestic companies may be able to take advantage of government incentives to bring jobs back to their home countries.

Increased cycles of global vs domestic dominance will drive divergence within the country and regional performance. Using country or regional indexes structured around economic exposure provides investors with a more precise, targeted investment solution for a world in flux.

MarketVector^TM’s global and local index pairs from the MarketVector^TM Economic Exposure Index family bring these concepts to life.