There's no fighting current trends. REALITY intrudes. THE REALITY IS, GLOBALIZATION. The Masters of the Universe wanted it this way and they navigated world trade toward this goal. United EUROPE and the EURO are just the start. WIKI PEDIA has a great story on this based entirely on the new book The World Is Flat: A Brief History of the Twenty-First Century is an international bestselling book by Thomas L. Friedman. This is a masterwork of REALITY that analyzes globalization, primarily in the early 21st century. The title is a metaphor for viewing the world as a level playing field in terms of commerce, where all competitors have an equal opportunity. As the first edition cover illustration indicates, the title also alludes to the perceptual shift required for countries, companies and individuals to remain competitive in a global market where historical and geographical divisions are becoming increasingly irrelevant.
The book was first released in 2005, was later released as an "updated and expanded" edition in 2006, and yet again released with additional updates in 2007 as "further updated and expanded: Release 3.0". The title was derived from a statement by Nandan Nilekani, the former CEO of Infosys.
In the book, Friedman recounts a journey to Bangalore, India, when he realized globalization has changed core economic concepts.[1] In his opinion, this flattening is a product of a convergence of personal computer with fiber-optic micro cable with the rise of work flow software. He termed this period as Globalization 3.0, differentiating this period from the previous Globalization 1.0 (which countries and governments were the main protagonists in) and the Globalization 2.0 (which multinational companies led the way in driving global integration).
Friedman recounts many examples of companies based in India and China that, by providing labor from typists and call center operators to accountants and computer programmers, have become integral parts of complex global supply chains for companies such as Dell, AOL, and Microsoft. Friedman's Dell Theory of Conflict Prevention is discussed in the book's penultimate chapter.
Friedman repeatedly uses lists as an organizational device to communicate key concepts, usually numbered, and often with a provocative label. Two example lists are the ten forces that flattened the world, and three points of convergence.
Ten flatteners (Friedman defines ten "flatteners" that he sees as leveling the global playing field:)
* #1: Collapse of Berlin Wall – 11/9/89: The
event not only symbolized the end of the Cold War, it allowed people from
other side of the wall to join the economic mainstream. "11/9/89" is a
discussion about the Berlin Wall coming down, the "fall" of communism,
and the impact that Windows powered PCs (personal computers) had on the
ability of individuals to create their own content and connect to one another.
At this point, the basic platform for the revolution to follow was created:
IBM PC, Windows, a standardized graphical interface for word processing,
dial up modems, a standardized tool for communication, and a global phone
network.
* #2: Netscape – 8/9/95: Netscape and the
Web broadened the audience for the Internet from its roots as a communications
medium used primarily by "early adopters and geeks" to something that made
the Internet accessible to everyone from five-year-olds to ninety-five-year
olds. The digitization that took place meant that everyday occurrences
such as words, files, films, music and pictures could be accessed and manipulated
on a computer screen by all people across the world.
* #3: Workflow software: The ability of machines
to talk to other machines with no humans involved, as stated by Friedman.
Friedman believes these first three forces have become a "crude foundation
of a whole new global platform for collaboration". There was an emergence
of software protocols (SMTP – simple mail transfer protocol; HTML – the
language that enabled anyone to design and publish documents that could
be transmitted to and read on any computer anywhere) Standards on Standards.
* #4: Uploading: Communities uploading and
collaborating on online projects. Examples include open source software,
blogs, and Wikipedia. Friedman considers the phenomenon "the most disruptive
force of all".
* #5: Outsourcing: Friedman argues that outsourcing
has allowed companies to split service and manufacturing activities into
components which can be subcontracted and performed in the most efficient,
cost-effective way. This process became easier with the mass distribution
of fiber optic cables during the introduction of the World Wide Web.
* #6: Offshoring: The internal relocation
of a company's manufacturing or other processes to a foreign land to take
advantage of less costly operations there. China's entrance in the WTO
(World Trade Organization) allowed for greater competition in the playing
field. Now countries such as Malaysia, Mexico, Brazil must compete against
China and each other to have businesses offshore to them. POSTER's
NOTE: 5 & 6 explain why you have no job.
* #7: Supply-chaining: Friedman compares
the modern retail supply chain to a river, and points to Wal-Mart as the
best example of a company using technology to streamline item sales, distribution,
and shipping.
* #8: In-sourcing: Friedman uses UPS as a
prime example for insourcing, in which the company's employees perform
services – beyond shipping – for another company. For example, UPS repairs
Toshiba computers on behalf of Toshiba. The work is done at the UPS hub,
by UPS employees.
* #9: In-forming: Google and other search
engines are the prime example. "Never before in the history of the planet
have so many people – on their own – had the ability to find so much information
about so many things and about so many other people," writes Friedman.
The growth of search engines is tremendous; for example take Google, in
which Friedman states that it is "now processing roughly one billion searches
per day, up from 150 million just three years ago".
* #10: "The Steroids": Personal digital devices
like mobile phones, iPods, personal digital assistants, instant messaging,
and voice over Internet Protocol (VoIP). Digital, Moble, Personal and Virtual
– all analog content and processes ( from entertainment to photography
to word processing can be digitized and therefore shaped, manipulated and
transmitted; virtual – these processes can be done at high speed with total
ease; mobile – can be done anywhere, anytime by anyone; and personal –
can be done by you.
Triple convergence
In addition to the ten flatteners, Friedman offers "the triple convergence", three additional components that acted on the flatteners to create a new, flatter global playing field.
1. Up until the year 2000, the ten flatteners were semi-independent
from one another. An example of independence is the inability of one machine
to perform multiple functions. When work-flow software and hardware converged,
multiple functions such as e-mail, fax, printing, copying and communicating
were able to be done from one machine. However, around the year 2000, all
the flatteners converged with one another. This convergence could be compared
to complementary goods, in that each flattener enhanced the other flatteners;
the more one flattener developed, the more leveled the global playing field
became.
2. After the emergence of the ten flatteners, a new business
model was required to succeed. While the flatteners alone were significant,
they would not enhance productivity without people being able to use them
together. Instead of collaborating vertically (the top-down method of collaboration,
where innovation comes from the top), businesses needed to begin collaborating
horizontally. Horizontalization means companies and people collaborate
with other departments or companies to add value creation or innovation.
Friedman's Convergence II occurs when horizontalization and the ten flatteners
begin to reinforce each other and people understand the capability of the
technologies available.
3. After the fall of the Berlin Wall, countries that had
followed the Soviet economic model – including India, China, Russia, and
the nations of Eastern Europe, Latin America, and Central Asia – began
to open up their economies to the world. When these new players converged
with the rest of the globalized marketplace, they added new brain power
to the whole playing field and enhanced horizontal collaboration across
the globe. In turn, Convergence III is the most important force shaping
politics and economics in the early 21st century.
Proposed remedies
Thomas Friedman believes that to fight the quiet crisis of a flattening
world, the United States work force should keep updating its work skills.
Making the work force more adaptable, Friedman argues, will keep it more
employable. He also suggests that the government should make it easier
to switch jobs by making retirement benefits and health insurance less
dependent on one's employer and by providing insurance that would partly
cover a possible drop in income when changing jobs. Friedman also believes
there should be more inspiration for youth to be scientists, engineers,
and mathematicians due to a decrease in the percentage of these professionals
being American.
Criticisms
In a 2007 Foreign Policy magazine article, Pankaj Ghemawat (professor at Harvard Business School), argued that ninety percent of the world's phone calls, Web traffic, and investments are local, suggesting that Friedman has grossly exaggerated the significance of the trends he describes: "Despite talk of a new, wired world where information, ideas, money, and people can move around the planet faster than ever before, just a fraction of what we consider globalization actually exists." However, criticizing the relatively small number of participants engaged in international trade fails to note their significance as witnessed by UNCTAD's Handbook of Statistics 2008. A mechanism that exemplifies this enters into action when a global trader makes a phone call to India to order a product – this first call generates potentially hundreds more local phone calls to make and sell the product.
The book is perceived to be written from an American perspective. Friedman's work history has been mostly with The New York Times and this may have influenced the way in which the book was written – some would have preferred a book written in a more "inclusive voice".
Nobel Prize winning economist Joseph Stiglitz has also been critical of Friedman's book. In "Making Globalization Work", Stiglitz writes:
Friedman is right that there have been dramatic changes in the global economy, in the global landscape; in some directions, the world is much flatter than it has ever been, with those in various parts of the world being more connected than they have ever been, but the world is not flat Not only is the world not flat: in many ways it has been getting less flat.POSTER'S NOTE: Unless you count a planet wide DEPRESSION. That's puhlenty FLAT!
Richard Florida expresses similar views in his 2005 Atlantic Monthly article, "The World is Spiky" However, Hans Rosling's statistical data (2006–2009) and numerous presentations have shown that significant global progress continues to be made, so growing spikes does not mean deflating valleys.
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