How Do You See The World? What We See Determines What We Do
Global ambition exists all around us, evident in nature, even when absent in leaders on the world stage.
Each September, millions of monarch butterflies begin a migration that tests their endurance and navigation skills. These delicate insects, weighing less than a gram, begin their journey south from Canada and the northern United States to Mexico, where they will spend the winter. Their 4,000-kilometer trek takes them through harsh conditions - over mountains, forests, and fields. It’s a journey of survival. Without it, their species would face collapse. The monarchs flying south today are not the same butterflies that left Mexico earlier in the spring. This new generation, driven by instinct, covers ground they’ve never seen before to navigate vast distances with unerring precision.
In their migration, there is no room for hesitation or complacency. What drives these butterflies is not just a search for warmer climates, but the need to ensure the survival of future generations.
At the same time, the humpback whales in the Southern Hemisphere begin their migration back to Antarctic waters from breeding areas in places like northern Australia, South America, Africa, and the South Pacific. These whales have spent the winter months mating and giving birth in the warm tropical waters of these regions. As spring commences, they travel south to the icy, food-rich waters of Antarctica, where they will spend the summer feeding. This migration is part of their annual cycle, ensuring they have sufficient energy stores for the next breeding season. It is the world’s longest mammal migration, covering up to 5,000 kilometers. Around 60,000 humpback whales make this journey every year. They navigate vast stretches of open ocean, returning to the same feeding grounds that sustain them.
For the humpbacks, the scale of their migration is staggering - thousands of kilometers over a three-month period. Their resilience and focus are critical to their survival. Just as with monarch butterflies, this is not a journey of choice but of necessity. These whales are driven by the need to sustain themselves and future generations, and they instinctively follow a well-trodden path.
In contrast, as September 2024 unfolds, economic nationalism gains momentum, reflecting a very different kind of global response1. Canada’s recent decision to impose significant taxes on electric vehicles made in China, followed by China’s retaliatory anti-dumping investigations into Canadian exports, showcases this trend. “Dumping,” the sale of exports below market value, is a tool increasingly used to advance national interests. The US and EU have leveled similar accusations against China, indicating a rise in the use of economic nationalism as countries aim to protect their industries and markets.
While most obvious in traded goods, economic nationalism is expanding into other areas, including restrictions on capital flows and foreign investments. Regulation has become a means of advancing national interests, with regions like the EU utilizing their middle-class consumer base as leverage. Nationalism can stifle international cooperation and destabilize the global economy.
When the world’s biggest challenges - like climate change, health, education, and economic inequality - are global, a nationalistic or localized focus typically leads to unequal wins and losses, often harming the most vulnerable regions.
Business leaders who look out into the world typically chart their course by analyzing the prevailing economic, geopolitical, competitive, and societal forces shaping the world.
In the face of rising nationalism, there is a lesson to be drawn from the monarchs and humpbacks. These species survive not through isolation but through collective action, synchronized movements, and the global ambition to thrive as one in the world. Their success is not about hoarding resources or erecting barriers but about movement, collaboration, and adaptation.
When the geopolitical tide is one of nationalism, it can be challenging for business leaders to swim against it.
At these times, business leaders face higher trade barriers, regulatory complexity, currency volatility, and supply chain disruptions. Local competition may intensify as governments favor domestic businesses, while access to foreign markets and global partnerships diminishes.
Yet, business leaders benefit from embracing a longer-term, broader, more collaborative mindset. The narrow focus of nationalism limits positive-sum growth and hinders progress. And, it does not sow the seeds of opportunity that opens up when the geopolitical tides shift.
By resisting the trend to stay close to home, leaders stand to benefit if they:
Expand networks globally: Build relationships that extend beyond their immediate company, city, industry, or country to access broader perspectives and opportunities.
Stay globally informed: Continuously monitor emerging global trends, technologies, and potential threats to anticipate shifts.
Collaborate across borders: Partner on short-term projects with organizations and individuals outside traditional geopolitical alliances, fostering innovation through diverse viewpoints.
Diversify offerings: Explore intangible-based products and services to mitigate risks and strengthen flexibility and resilience when nationalistic policies restrict the movement of goods.
There’s more to the world than what we see.
Global ambition exists all around us, evident in nature, even when absent in leaders on the world stage. As leaders, we would do well to be inspired and instructed by the more ambitious species.
Further Reading:
https://www.ubs.com/global/en/wealth-management/insights/chief-investment-office/market-insights/paul-donovan/2024/more-economic-nationalism.html