Business > The Economics of Globalization

It’s a Flat World, After All
“When the world is flat, you can innovate without having to emigrate.”

Just about every day we hear about globalization but this article is opening our eyes about what were the events that were the results of the “Flat World”, how poor countries will benefit and how Americans are challenged from it.

Globalization, international competition is here and American workers got too expensive, too lazy, the US don’t have enough engineers and scientists, and American high school education is obsolete. These are the main reasons why American businesses are using outsourcing, offshoring and open-sourcing.

I’m very happy that globalization is taking place in our lives. It gives everybody an equal opportunity to be a professional without coming to the United States. The invention of the internet plays a major role in globalization, the Netscape revolution brought the people-to-people connectivity to a whole new level, where people could connect to other people from more different places in more different ways than ever before. India benefited the most of the Netscape moment, because it didn’t have resources, neither infrastructure.

The most exciting part of globalization is that it will connect all the knowledge pools in the world together. The world now is a global, Web-enabled playing field that allows for multiple forms of collaboration on research and work in real time, without regard to geography or distance. After the 1990’s people of China, India, Russia, Eastern Europe, Latin America and Central Asia were free to join the free market. The sum of these people is about 3 billion, which ran to the playing field, and it is one of the most important force shaping global economics and politics in the early 21st century.

With the gradual integration of China, India, and other developing countries into the global economy, hundreds of millions of working-age adults will join what is becoming, through trade and investment flows, a more interrelated world labor market.  World patterns of production, trade, employment, and wages will be transformed. This enormous work force - a growing portion of which will be well educated - will be an attractive, competitive source of low-cost labor at the same time that technological innovation is expanding the range of globally mobile occupations.

The greatest benefits of globalization will accrue to countries and groups that can access and adopt new technologies. In the future, gaps will widen between those countries benefiting from globalization - economically, technologically, and socially - and those underdeveloped nations that are left behind.

The United States faces the challenges of globalization. Americans should study and work harder, produce more engineers and scientists, because there are many people on the “Flat World” who are ready to compete.

 

 

 

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