Module 1

Megan Flinders

IST 1100 – Module 1: The World is Flat

 

In his book, The World is Flat, Thomas L. Friedman introduces readers to the phenomenon of outsourcing and increased efficiency and cost savings.  The early chapters begin by discussing the topics of globalization, worldwide events which spurred economic change, such as the fall of the Berlin Wall, and innovative products and companies which forever changed the global competitive landscape.

In the beginning, Friedman takes us through his viewpoint of a flattening global society as he describes three phases of globalization.  He begins by introducing Globalization 1.0 as the time between when Columbus set sail in 1492 until the opening of trade between the Old and New World around 1800.  This era of globalization was about shrinking the size of the world (from large to medium) and driving integration through the muscle and brawn of a country. Friedman mentions that the primary questions of Globalization 1.0 were, “Where does my country fit into global competition and opportunities?” and “How can I go global and collaborate with others through my country?” (Friedman, 2005, p. 9)

Globalization 2.0 was the next era which ran from the 1800s through the year 2000.  Once again the size of the world shrank; this time from medium to small.  The driving force of this phase was the idea of multinational companies.  Global labor and markets propelled by falling transportation costs (mainly due to the steam engine and the railroad) and reduced telecommunication costs (thanks to innovation and invention) were key to this phase.  The global economy was introduced in this phase, and increasing integration and globalization of companies was a central theme. The main questions were, “Where does my company fit into the global economy?”, “How does it take advantage of the opportunities?”, and “How can I go global and collaborate with others through my company?” (Friedman, 2005, p. 10)

The final phase of Globalization 3.0 was when the size of the world went from small to tiny.  This is also the phase were the playing field was flattened in terms of competition.  This phase is where individuals had their chance to compete and collaborate globally.  Now the questions that should be asked are, “Where do I as an individual fit into the global competition and opportunities of the day, and how can I, on my own, collaborate with others globally?” (Friedman, 2005, p. 12)

While all phases of globalization dealt with the flattening of society, the main difference was in what was being globalized.  Globalization 1.0 was about the global integration of countries, while 2.0 incorporated the idea of multinational corporations and modes of communication and trade.  3.0 was all about the individual’s ability to connect and communicate, and the leveling of the playing field among corporate superpowers and the everyday individual (i.e. the JetBlue’s of the world which employ stay at home mom’s, against the traditional airline companies with fully staffed offices and corporate agendas).

One of the major worldwide events which aided the flattening of the world was the fall of the Berlin Wall.  Friedman mentions, “It tipped the balance of power across the world toward those advocating democratic, consensual, free-market-oriented governance, and away from those advocating authoritarian rule with centrally planned economies.” (Friedman, 2005, p. 52)  Capitalism was the resultant economy and people were forced to learn how to handle this new system.  The people and the demands thereof would rule instead of the antiquity of a top-down governmental system.  The fall of the Berlin Wall was a sign of the times and those who were not on board were seen as on the wrong side of history.  It was a world flattening event, and somewhat of a get out of jail free card for many, as they were no longer confined to the meager living standards shared through a communist government.  While some of the older generation were uncomfortable with a new governmental system which allowed some to excel while others failed, most of the younger generation looked forward to the newfound freedom and limitless potential.

The fall allowed globalization to take flight as more countries were seen as a seamless whole.  No longer were nations fixated on individual policy and well-being, but looked to global efficiencies and potential.  Common standards and best practices were adopted and archaic norms were relegated as ideas of the past.  The political constrain on individual reach was greatly eliminated by the fall of the Berlin Wall.

Along with worldwide political events, other paradigm shifts in innovation truly enabled the flattening of the world. The company Netscape was a huge flattening force which made computers and the internet much more connected and dynamic.  Friedman mentions that in the process of wiring the whole world, “without anyone really planning it, made Bangalore a suburb of Boston.” (Friedman, 2005, p. 63)  One of Netscape’s main benefits was the way it presented website data (its browser system) and made it user friendly to all types and sophistications of people.  All the while, Netscape aimed to keep the system on an open protocol, meaning open to users for free (but those who could pay, i.e. businesses, could buy it on a disk).  Netscape did this to not allow larger companies, such as Microsoft, to shift the protocols to proprietary that only their servers could handle.  This allowed all computers to continue the globalization and open connectivity regardless of what system they were on.  People wanted a universal way to browse the internet, but also a universal way to access the information.  Ultimately, Netscape unlocked humanity’s innate desire to connect with each other as a wired society.

Friedman makes many compelling arguments in the opening pages of his book, and I have seen many of these events take place on a personal level.  For instance, my husband works for a global company and many of his work functions are those which have been transferred from the higher cost locations of New York and London.  He, however, interacts weekly with his global counterparts in Bangalore, New York, Europe and Asia as they complete projects as virtual working groups.  The flattening of society has continued through various forms of social media and it is evident in his workplace.

I also agree with the premise of Globalization 3.0 in that all people are able to instantaneously share their voice through social media platforms of Twitter, Facebook, Instagram and more.  Connectivity between individuals has never been easier.  For example, my family members who live out of state are readily available through phones, FaceTime and other technological services.  Therefore, Friedman’s views were correct in 2007 that our society would only continue to develop and innovate.