The World Is Flat, Assessment Example

The advances in the field of information and technology are one of the major reasons as to why globalization is intensifying at a faster pace compared to the past decade. The technological and social shifts in the global market has made it possible for most multinational companies to trade freely or at minimized production costs. The invention of communication technology has made possible for individuals placed in far off geographical locations to be able to interact and socialize more affordably and efficiently. Whether for business or personal use, technology has definitively made the world seem like a smaller place. This singularity is what has aided in the rise of globalization. The effect that a flat world economy has on an individual looking for a job simply delivers a wide and broad job market to choose which one they are precisely interested (Friedman, 2008).

The wireless and web based technological platforms has made it possible for multinational companies to be able strategically manage their resources while saving on production costs. Most of the emerging markets are gaining access to information flow running on a global scale. The benefits of fast search engines and the sharing of information or knowledge globally is becoming a fast development tool for personal or business growth. Looking at an example, the Apple Company has major distribution channels and production subsidiaries, for instance, in the Asian continent mainly in China and Korea.

Software and hardware devices are increasingly becoming available and popular in third world economies. The level of health, education and economic development can be attributed to globalization given that most big companies outsource their labor force in order to satisfy demand while keeping production cost on the low. Companies like Apple have managed to establish their presence in the large emerging markets, like China and India where the demand for the latest iPhone 6 product went above 10 million on the first weekend of release. Localization of production in places like china has enabled the big companies increase its productivity while maintaining a low cost labor force which saves on the any additional operational costs.

IT plays a major and integral role in this process since it is greatly needed by most companies to fasten the processes of production, communication and even trading of goods or services. The skills needed or required to survive in flat world market is specialization. Implementing internal-specialization (monopoly) for an individual’s business idea can aid in reducing the price or cost of production. Specialized equipment or services may be required for an industry or business to excel. Having entrepreneurial objectives is one of the key drivers that has promoted and advanced most companies that have made through the past two decades (Friedman, 2008).

Having a robust network of individuals for a company encourages both the internal and external economies of scale. These are beneficial to the industry through delivering cost reduction methods. If the external economies exist for a business, then a country that possesses a large business will definitively and most definitely have low costs of production for the services or goods that business manufactures. The multinationals labor outsourcing or pooling ability has simplified the supply chain and manufacturing costs for them while enhancing their product quality. Increasing a company’s competitiveness and profitability in this contemporary world mandates the use of information and computational technological systems.

References

Friedman, T. L. (2008). The world is flat: A brief history of the twenty-first century. Vancouver: Douglas & McIntyre.