WHY THE WORLD ISN’T FLAT

Technology allows strong competition from various areas of the world.
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Actually, the world isn't flat
Let's watch a lecture video.
/talks/pankaj_ghemawat_actually_the_world_isn_t_flat?language=en
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ERA 2

The first multinational companies went global for markets and labor. Dutch and English companies were the first.
The Industrial Revolution was a major stimulus.
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“Even if the world isn’t quite flat today, it will be tomorrow.”(P.80)
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GLOBALIZATION

Friedman’s meaning of globalization: Global integration
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CORE IDEA OF HIS BOOK
WHY THE WORLD ISN’T FLAT
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MEANING OF “FLAT”

The playing field for competing in the world is leveled. No longer do only a few advanced nations, companies, and individuals have opportunities to successfully compete.
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3. 2000 TO TODAY

This is called Globalization 3.0

This shrank the world from size small to size tiny – and flattened the playing field.
Key force driving globalization: Individuals
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REMINDER – DRIVING FORCES
Era 1: Countries


Era 2: Companies Era 3: Individuals

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THE FLAT-WORLD PLATFORM
a. The personal computer
b. Fiber-optic cable c. Work flow software
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2. 1800 TO 2000

This is called Globalization 2.0

This shrank the world from size medium to size small.
Key force driving this globalization: Multinational companies
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3 ERAS OF GLOBALIZ00
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1800 to 2000 2000 to today
3.
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1. COLUMBUS TO 1800

This era is called globalization 1.0
This era shrank the world from a size large to a size medium.
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10 FORCES THAT FLATTENED THE WORLD
1. 2. 3. 4.
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6. 7.
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9. 10.
Computer access to information New age of connectivity Work flow software Uploading Outsourcing Offshoring Supply-chaining Insourcing In-forming The steroids
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REMINDER: WE ARE STILL DISCUSSING ERA 3: 2000 TO TODAY
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FRIEDMAN’S PERCEPTION

Technology flattens the hierarchy by giving lower level people information and therefore power.
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TECHNOLOGY DECENTRALIZES POWER

Old hierarchies are leveled. The playing field is leveled. Individuals have more power.
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Developing countries with cheap labor, an educated population, and highly motivated people, will likely be the greatest winners.
China is at the top of the list. (The cities of China are highly developed but much of the country is developing.)
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SPEED OF CHANGE

This flattening is happening much faster than any other major change in history.


Key forces driving this globalization: muscle, horsepower, wind power (sailing ships), steam power
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ERA 1

Inspired by religion and imperialism, countries broke down walls by establishing colonies. England, Spain, and later the U.S. are examples of colonial powers that increased global integration.

“It is now possible for more people than ever to collaborate and compete in real time with more other people on more different kinds of work from more different corners of the planet and on a more equal footing than at any previous time in the history of the world.”
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THREAT OF CHANGE

The faster and broader change, the greater the opportunity for disruption of social systems.
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OUR CHALLENGE

To absorb changes in ways that do not overwhelm people.
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The world is viewed as a seamless whole.
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Technological changes have strengthened those below and weakened those above. People from across the world are tapping into one another’s knowledge pools. There may be an adoption of common standards.
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Thank you!
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