Tuesday, 3 January 2017


We believe that the people who believe the earth is flat was uneducated. But the best-selling book, Thomas Friedman, The World Is Flat (2005), helped us understand that if the world is not quite flat, it is deeply interconnected as never before. Friedman's book described how technology and falling trade barriers led to the integration of markets and countries and individuals to enable companies and nation-states to reach around the world faster and cheaper than ever before. We see evidence of this interdependence in our lives every day from the food we eat to the coffee we drink to the clothes we wear. Sports teams recruit talent from all over the world, and are manufactured on the iPhone we use to communicate in more than 19 different countries.

This shift has occurred in the world relatively recently and over a short period of time. Economic liberalization to China at the beginning of the 1980s, the development of democracy in South Korea in 1987, and the fall of the Soviet Union and the development of free trade agreements in the early 1990s gave three billion people, is embroiled in advance in their own national economies in the global economy. Professor of Economics at Harvard University's Richard Freeman calls this "large double" of the global labor force (the National Governors Association, the Council of School Officers Head of State, and to achieve, Inc., 2008, p. 9). In the late 1990s, and wiring of the world in preparation for the "millennium bug" has launched another set of radical changes, as did the 2001 accession of China to the World Trade Organization and the liberalization of the economy in 2003, India, which began to jump tremendous growth of the country. The results were spectacular. Twenty years ago, bikes were China's main way of transportation, representing the G7 group's most powerful nations on earth, and the World Wide Web was just a suggestion (McKinsey, 2011). Who was at that time would have imagined the great skyline in Shanghai today that the G7 will become the G20, and that would be the use of mobile internet is growing exponentially all over the world?
The effects of globalization has been far-reaching. While standards of living in the world is still very uneven, has moved 400 million people out of extreme poverty since 1980, more than any other time in human history. Growth and urbanization of the global middle class is creating a huge new markets for goods and services of all kinds. Since 2000, despite repeated political and economic crises that cause a temporary decline, the global economy may expand (Zakaria, 2008). The world's economic center of gravity also turns: 50 percent of the growth in gross domestic product (GDP) is happening outside of the developed world, a fact that is radically changing business models. Indeed, one in five US jobs is linked to exports, and that the rate of increase (US Census Bureau, 2004)

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