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In: Economics

Contemporary Globalization Thomas Friedman argues that the world has been flattened, i.e., the economic playing field...

Contemporary Globalization

Thomas Friedman argues that the world has been flattened, i.e., the economic playing field has been made more level to more people than ever before. On the other hand, academics like Richard Florida argue that the playing field is not level but highly uneven. Who, and what sector of the economy is Friedman really referring to? What are some of the ways that the world is and is not flat?
write in 200 words.

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Expert Solution

Answer :- Thomas friedman argues that world is flattened in the sense that the competition between industrial sector and new emerging market is levelling up. Industries as well as individual entrepreneurs both small and big one is becoming part of global supply chain across the world. Industrial Competition is rising in entire world. This is happening because of new advance technology and communication network.

The world is becoming flattened because of these political ,technological and industrial events :-

* fall of Berlin Wall - it ended communism and liberated millions of people. It helped shifting of much part of world from centrally planned economy to democratic government.

*Internet :- people can communicate, send, receive or share intellectual content easily and instantly without wasting any time.

*workflow software :- people can easily collaborate while working in remote areas. People can display, manage and collaborate on projects and share information.

*outsourcing :- call center, tax preparation could be done by other company at cheaper price.

*uploading :- free access to computer application software which were earlier purchased. Free download from internet is possible now.

*offshoring :- factories, industries are operated in totally different location. It saves cost on production as labour is available at cheaper rate, subsidized energy and lower tax rate is provided by government.

*wireless connectivity.

* supply chaining :- collaboration with suppliers, customers as well as retailers to create value during distribution and production process of goods.

* Informing - people can access information from internet without wasting any time. People can acess knowledge from world libraries through web.

*Insourcing :- small as well as mid sized companies can provide service to big supply chains without much expense. For example UPS is fixing computers for the Toshiba.

World is not flat it's landscape is spiky because of economic disparity. Growth of cities as more and more people are residing in urban areas . There was only 3% population living in urban areas during 1800 which went to 30% in 1950s but now it stand almost 50 % . In developed countries out of 4 people 3 lives in cities. Difference in population density represent the spikiness of global economy.


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