Y376 International Political Economy November 3, 2009
Who is Tom Friedman? <ul><li>Columnist for the New York Times </li></ul><ul><li>Became famous for coverage of Arab-Israeli...
Three Globalizations <ul><li>Globalization 1.0: 1492-1800 </li></ul><ul><ul><li>Countries </li></ul></ul><ul><ul><li>Muscl...
Friedman’s Definition of Flatness <ul><li>“ The net result of this convergence was the creation of a global, Web-enabled p...
The Ten Flatteners <ul><li>The end of the Cold War  </li></ul><ul><li>The beginning of the “viral marketing”; </li></ul><u...
Viral Marketing <ul><li>The distribution of free software and services to create a platform for selling other things </li>...
Work Flow Software
Open Source Software <ul><li>A set of principles about how to write software in which source code is available to others f...
Outsourcing <ul><li>Subcontracting a process, such as product design or manufacturing, to a third-party company </li></ul>...
Off Shoring <ul><li>The relocation of business processes from one country to another </li></ul><ul><li>Examples </li></ul>...
Bangalore
Major Indian Companies in Bangalore <ul><li>Infosys </li></ul><ul><li>Wipro </li></ul>
Complex Supply Chains <ul><li>Definition: system of organizations, people, technology, activities, information and resourc...
Insourcing <ul><li>The penetration of many large firms by other firms that provide services and logistical support inside ...
In-forming <ul><li>the rise of search engine portals  such as  Google and Yahoo! </li></ul>Larry Page and Sergey Brin Jerr...
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  1. 1. Y376 International Political Economy November 3, 2009
  2. 2. Who is Tom Friedman? <ul><li>Columnist for the New York Times </li></ul><ul><li>Became famous for coverage of Arab-Israeli conflict </li></ul><ul><li>1999 book, The Lexus and the Olive Tree , was a best-seller </li></ul>
  3. 3. Three Globalizations <ul><li>Globalization 1.0: 1492-1800 </li></ul><ul><ul><li>Countries </li></ul></ul><ul><ul><li>Muscles (energy consumption) </li></ul></ul><ul><li>Globalization 2.0: 1800-2000 </li></ul><ul><ul><li>MNCs </li></ul></ul><ul><li>Globalization 3.0: 2000 to present </li></ul><ul><ul><li>Driven by empowered individuals from countries outside US/Europe </li></ul></ul>Source: Friedman, pp. 8-11.
  4. 4. Friedman’s Definition of Flatness <ul><li>“ The net result of this convergence was the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration -- the sharing of knowledge and work -- in real time, without regard to geography, distance, or, in the near future, even language. No, not everyone has access yet to this platform, this playing field, but it is open today to more people in more places on more days in more ways than anything like it ever before in the history of the world. This is what I mean when I say the world has been flattened.” </li></ul>Source: Friedman, pp. 176-177.
  5. 5. The Ten Flatteners <ul><li>The end of the Cold War </li></ul><ul><li>The beginning of the “viral marketing”; </li></ul><ul><li>The invention of work flow software and supporting systems; </li></ul><ul><li>The rise of the open source software movement; </li></ul><ul><li>The outsourcing of work by multinational corporations (MNCs) to low-wage workers in India and China; </li></ul><ul><li>The off shoring of certain important operations by MNCs; </li></ul><ul><li>The rise of complex, international supply chains for many products and services; </li></ul><ul><li>The rise of “insourcing;” </li></ul><ul><li>“ In-forming” </li></ul>Source: Friedman, chapter 2.
  6. 6. Viral Marketing <ul><li>The distribution of free software and services to create a platform for selling other things </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Mosaic and Netscape Navigator </li></ul></ul><ul><ul><li>Free downloads on iTunes </li></ul></ul><ul><ul><li>Free distribution of Radiohead album </li></ul></ul><ul><ul><li>Ads on Google search result pages </li></ul></ul>
  7. 7. Work Flow Software
  8. 8. Open Source Software <ul><li>A set of principles about how to write software in which source code is available to others for the purpose of improving it </li></ul><ul><li>Pioneers: Eric Raymond, Richard Stallman, Linus Torvalds (Linux) </li></ul>Richard Stallman as St. IGNUcius Linus Torvalds
  9. 9. Outsourcing <ul><li>Subcontracting a process, such as product design or manufacturing, to a third-party company </li></ul><ul><li>Example, in 2004 Wyeth Pharmaceuticals transferred its entire clinical testing operation to Accenture Ltd. </li></ul>
  10. 10. Off Shoring <ul><li>The relocation of business processes from one country to another </li></ul><ul><li>Examples </li></ul><ul><ul><li>Assembly of Apple iPods in China </li></ul></ul><ul><ul><li>American Express call centers in India </li></ul></ul><ul><ul><li>Disk drive manufacturing by Seagate in Singapore </li></ul></ul><ul><ul><li>Sony LCD TVs manufactured in Korea </li></ul></ul>
  11. 11. Bangalore
  12. 12. Major Indian Companies in Bangalore <ul><li>Infosys </li></ul><ul><li>Wipro </li></ul>
  13. 13. Complex Supply Chains <ul><li>Definition: system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer </li></ul>Supply chain for Cadbury Schweppes chocolate bars
  14. 14. Insourcing <ul><li>The penetration of many large firms by other firms that provide services and logistical support inside the firm </li></ul><ul><li>Examples </li></ul><ul><ul><li>UPS and Dell Computers </li></ul></ul>
  15. 15. In-forming <ul><li>the rise of search engine portals such as Google and Yahoo! </li></ul>Larry Page and Sergey Brin Jerry Yang
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