Many countries have reacted to the global connected economy by attempting to put up barriers, such as data residency requirements, to keep leading U.S. information companies like Google, Facebook, and Microsoft from moving data across national borders. Thinking that they are cracking down on U.S. tech leaders and in the process helping their own domestic information firms, these policymakers overlook that many of their domestic companies, in a wide range of industries, now rely on cross border data flows for competitive advantage. Only by creating a global trade system that respects the free flow of data in all industries can countries fully realize the benefits of a data-driven economy.
