Development in World Economy

Running head: DEVELOPMENTS OF WORLD ECONOMY
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Development in World Economy
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DEVELOPMENTS OF WORLD ECONOMY
Thomas L. Friedman in his book “ The World is Flat: A Brief History of the Twenty- first
Century” discussed the technological developments that have given rise to more leveled
world due to augmentation of competition that has made global economy more flatten. This
flatten economic ground has created more opportunities for developing and under privileged
nations through rise of knowledge and prosperity thus resulting the flattening world to
establish competition with that of US and other super powers of world. Example advances in
technology and communication that was earlier a strength of developed nations has now been
acquired and pervaded by nations like India and China thus enabling them as more
economically competing. This leveling or flattening effect is very discerning as it is has
given way for more ingression and opportunities and as per Friedman’s opinion the flattening
ramification is deeper comparatively in extension to the Industrial revolution. According to
Josan (2012) the flat world has created outsourcing jobs from US to other nations thus
distributing more employment opportunities from US to an overseas nations which helps to
enhance that nations economic condition as well as living standards thus eventually creating a
demand for US goods and services. In Freidman’s perspective this is an optimistic
development that would extend to refinement and growth until the world economies become
lateral or a flat line. As such according to Perelman (2015) in Friedman’s opinion a flat world
means that the world is moving towards a collaboration path where each nation will be
economically relying on one another and there will be more networking and correspondence
between different nations across the world. This situation will give way to more opportunities
as well as few threats such as the worst risk that can be expected in flatten world would be
revengeful nuclear terrorism incidences the impact of which would be to form impediments
to shared information and as such make a return to more isolationist channels. Contrary there
are even mutual gains driven with flatten world that are more optimistic and beneficial for
everyone such as advances in communication and connection in contrast to negative
outcomes of flat world through terrorism that would be reciprocally damaging for everyone
(Jesuit & Sych 2012).
Moreover according to Li & Zhou (2015) in flat world the advances in technology and
communications has united the world and brought it closer where anytime and from
anywhere people and enterprises irrespective of the part of the world they are can connect
and correspond through video conferences. As such the realization of world is flat has made
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DEVELOPMENTS OF WORLD ECONOMY
the ground for more global and mature competition based on flattening aspects. In his book
Friedman also mentioned the history of globalization and identified its phases of evolution.
The first phase of globalization was between 1492-1800 and during this time trade
connections began to be established amid new world and old world. Then during 1800-2000
there was phase of globalization 2.0 where the liberal forces led to global unification of
various transnational enterprises across the world. According to Nuno (2015) this was the
period where global market was formed. Further with augmentation of globalization 3.0 the
world will continue to contract and become more flatten but it will be different from earlier
span which Friedman identified would be perhaps because the world will become
decreasingly a Western operated process.
Further Friedman in his book the world is flat has discussed the forces that have resulted into
flattened world. The first flattener being the fall of Berlin wall which reflected the end of
Cold war as well as witnessed the rise of capability for nations, enterprises and people to
unite the economic channels through capitalism which was an important symbol of events.
The world is no more divided into communist and capitalist and there is a rise in economic
dependency between nations that has allowed correspondence and trade for more prosperity.
Also with advances in technology several people have got options to become familiar with
information sharing networks like computers which has united the world with fastest and
convenient access to information which Friedman stated to be the period of New Age of
Creativity.
The second flattener has close association with Netscape as it got public and now with help of
this various new platform like internet and world wide web has been possible. Each
individual can use these platforms to interact with others from any part of the world and as
such the world has become considerably smaller as internet has reduced any kind of physical
boundaries (Kurecic & Kampmark 2016). Also other communication means like HTML,
SMTP for email and FTP for file transfer has enhanced the capability of people from across
every section of world and life to interact and transfer information through long distances
with more ease and promptness.
The third flattener is prevalence of large range of software standards that has permitted
people to do more with help of computers and this has capacitated nations and enterprises to
collaborate closely on different works. As such intervention like IP, XML, HTTP has made
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