Module One - The World is Flat

Module One- The World is Flat

            Global integration is not a subject that I would have been interested in reading about; however, Freidman has the ability to put it words that are very easy to understand.  I found Freidman’s categorization of the three great eras as Globalization 1.0, Globalization 2.0 and Globalization 3.0 very fascinating.  Their titles remind me of a computer program or an application on a cell phone or iPad.  The way he describes how the eras are divided made a lot of sense and I found it easy to follow.  The concepts Freidman conveys in his book are enlightening as well as insightful. 

            Freidman classified the three eras in the following manner:

·         Globalization 1.0 covers the time period of 1492 to 1800.  This era took a large world and shrunk it to medium.  Freidman stated the key agent to change and global integration during Globalization 1.0 was how much brawn – muscle, horsepower, wind power, or later steam power – your country had and how creatively you can deploy it.  The countries and governments were working together for global integration.  The countries were flexing their muscle and showing their strengths and abilities.

·         Globalization 2.0 covers the time period of 1800 to 2000.  This era took a medium world and shrunk it to small.  According to Freidman, in Globalization 2.0 the driving force for global integration was multinational companies.  It was a time that multinational companies went global for markets and labor.  It was the age fueled by falling transportation and communication costs.  Friedman stated that the steam engine and railroad were the key agents in the lower cost for transportation.  The telegraph, telephones, PC, satellites, fiber-optic cable and the early world- wide-web were the key agents to the decline in the costs of communication.  During this era came the realization of the ability to have a global market and growth of global economy.

·         Globalization 3.0 covers the time period of 2000 to present.  This era shrunk the world from a small to tiny.  This era is vital in flattening the playing field.  Freidman stated that this is the era of individual power to collaborate and compete globally.  It produced what Freidman calls the flat-world platform, which is the product of a convergence of the personal computer with fiber-optic cable with the rise of work flow software.  This gave the individual more power to compete globally and be more successful.  This era differs from the others in that it is not just the Europeans and Americans that are successful.  Individuals of various race and color now have the ability to successfully compete in business.

            The Berlin Wall fell November 9, 1989, which according to Freidman, not only liberated the people from the Soviet Empire, but tipped the balance of power across the world toward democratic freedom and away from authoritarian rule.  Governments began to be run by the interests of the people rather that the whims of the leaders.  The doors were open to a global policy which paved the way for a single market, single ecosystem and single community.  Nations began working together instead of opposing one another and develop global policies. 

            The fall of the Berlin Wall also started the push for more freedoms which allowed more individuals greater opportunities.  It also paved the way for the development of common standards governing the economy, banking, accounting, and how personal computers are built.  According to Freidman, the adoption of the common standards flattened the playing field world-wide. 

            The development of the personal computer and then Window 3.0 were instrumental in allowing individuals to access, author, and share information world-wide.  Programmers were designing more applications to enhance a business’ productivity and increase profits.  Communication by email gave individuals the ability to correspond with others within their network and share information.  This communication was very limited as it was not able to cross over into another network successfully.  There was no guarantee that the person you sent the email to would actually receive it.  These systems were proprietary and prohibited users from sharing information with others outside of their network. 

            The creation of Netscape, a commercial browser, allowed communication between networks.  It was user friendly and allowed individuals to explore the internet with ease.  It opened up a new door for the general public.  It was the first system which had open standards to allow users to access information no matter which network they were on.  Netscape chose to remain public to ensure that information would remain accessible to everyone.  The developers wanted everyone to be able to access information and easily share it.  Soon others were able to see the benefits of having a public network, and being able to interoperate with other servers. 

            The growth of the world-wide-web and its abilities increased the potential of many people to compete in business globally.  It also gave America another source of inexpensive, efficient labor.  A business person now has the ability to out-source to other countries to accomplish a project at a more economic cost.  Businesses can to get a project completed by an individual in another country at a much lower rate with the same quality of work.  Many businesses that operate in America use out-sourcing to control costs.

            I found it interesting that tax returns for citizens of the United States were being completed out of the country through a VTR (virtual tax room), at a much lower cost.  Through global integration, there is a much larger resource of qualified individuals willing to perform duties at a much lower cost.  I did not think that there would ever be a possibility Americans would have this much competition for job opportunities on a global level. 

            The changes that have been brought about through global integration in a short period of time is astonishing.  No wonder a computer you just bought two years ago is now obsolete and is being replaced by a newer, faster computer.  Sharing information and being able to gather information globally is beneficial to all involved.  It is simply amazing what technology is capable of doing, and the doors that have been opened with the flattening of the playing field.  The benefits that can and will be gained from the global integration are seemingly endless.