For example, many Internet companies in the late 1990s said that profits didn't matter and were unnecessary and that revenues were the key measure to the value of their enterprises. Later these parties found that earnings do matter. The reason we have to rethink our economic and investment strategy is because globalization is occurring at a rapid pace and technologies are increasing efficiency and replacing inefficient labor. But Battipaglia notes that World War I, World War II and the Cold War slowed globalization for the last 80 years.
Technology aids the globalization of the economy.
The cost of computing power and telecommunication costs have been declining at an incredible rate and parties can communicate freely today across borders using the Internet. Manufacturing has also moved across borders. Electronic components might be made in Asia, shipped to Mexico to be assembled, and the products finished and sold in the United States. Europe is in the early stages of developing investment strategies where pension funds might be invested in the market. We agree with Mr. Battipaglia that the globalization of the economy will present many interesting opportunities for investors.