Evaluate the Claim That We Are Heading Towards A ” Flat World”, in Which Location in Becoming Irrelevant in Shaping Patterns of Economic Development
Table of Contents
Evaluation and Analysis of the Concept of Flat World. 3
Evaluation of Current Changes and Practices. 6
Challenges of the Flattening World. 8
Introduction
Globalisation has emerged as a revolutionizing trend which has transformed the global industries and economies. Over the years, the relevance of globalisation has increased at a rapid pace as it has had a profound impact in reducing trade barriers as it has allowed organisations and economies to function across international borders. It is evident that the advent of globalisation has acted as a major disruptor causing numerous industries and countries to adapt to its methods of functioning. Hence, it can be evaluated that one of the crucial features of globalisation is that it has clearly closed down international distance and barriers while ensuring improved connectivity and lower distancing (Rodríguez-Pose and Crescenzi¸ 2018). The globalisation has been vastly possible due to the implementation of technology as it has played a crucial role in establishing adequate facilities, infrastructures and mechanisms that are crucial in ensuring improved communication, connectivity across international borders (Darling-Hammond, 2015). It is expected that there would be a significant increase in the relevance of globalisation as a larger number of industries aim to benefit from the advantages of trade across international borders. Furthermore, it can be evaluated that globalisation has also had a profound positive impact on economies as it has promoted extensive economic growth. Hence, governments and authorities across the world have clearly promoted internationalized trade which had been promoted over the years through an array of measures and techniques. It is expected that further promotion of global trade and regulations would be witnessed in the years to come (Friedman, 2005). In that context, it can be evaluated that the reduction in the global gap of distance between geographically difference locations has been termed as flattening the world which is a highly controversial term due to the extent of its impact on globalisation and business industries that have been disrupted due to its large-scale growth over the last few years (Hersh et al., 2010).
Evaluation and Analysis of the Concept of Flat World
The term flat world is highly dynamic in its nature and increasingly higher number of locations globally has been impacted by it. As the term suggests, it is not limited to the geographical impact of the studies on the business entity as it rather emphasizes on factors such as evaluation of the changes in the form of administration deployed and the shifts in the methods of communication within the business entity (Rodríguez-Pose and Crescenzi¸ 2018). It can be evaluated that the role of technology in facilitating the improved utilization of modern technologies is extensively high as it has also resulted in the facilitating of the technological revolution which has dynamically restructured the operationality and functionality of modern business entities (Darling-Hammond, 2015).
The term flat world has evolved significantly and it is evident that the nature of the modern business environment has clearly attracted a larger number of individuals towards adapting a clear understanding about how technological growth reduces global geographical distance which may act as a disruptor in terms of facilitating effective communication (Friedman, 2005). It is clearly evident that the benefits of closing down of the international gap is also considerably high. However, there are extensive challenges associated to it which has clearly had a negative impact and has had resulted in growing concerns regarding the wide-spread implementation of globalisation practices which aim to widen social gaps but reduce the technological gaps by ensuring improved availability of affordable technology (Hersh et al., 2010).
According to recent studies it is evident that the various stages of globalisation has clearly reduced the overall size of global operations significantly. It is believed that Globalisation 1.0 reduced international trade barriers and resulted in the shrinking of the large-scale global business environment into a medium size business atmosphere consisting of businesses that operate devoid of international restrictions (Rodríguez-Pose and Crescenzi¸ 2018). Secondly, the evolution of Globalisation 2.0 clearly reduced the size of the business environment further by introducing new concepts and trends which had a major positive impact on the functionality of business entities. However, it clearly shrank the size of the business environment which highlights the fact that the trade barriers were further reduced to ensure an improved ability to communicate, practice trade (Hersh et al., 2010). Finally, the most recent edition of Globalisation i.e. the 3.0 version has had enhanced the dependence on technology clearly reducing the overall size of the global business environment while also enhancing the ability of businesses to operate seamlessly irrespective of geographical distance through the utilization of modern technologies. In that context, it can be evaluated that the growth of the newest version of globalisation which emerged in the early 2000s clearly marks numerous advantages in terms of efficiency of operating businesses in major industries. However, it has numerous societal, economic and technological implications which need to be highly systematically (Friedman, 2005).
Globalisation is clearly a modern process which involves a collective reaction of numerous important factors such as technology, culture, language, business, politics and innovative ideas. Over the years, the different stages of globalisation have clearly enhanced the scope of its applicability by reducing trade barriers and enhancing the ease of conducting large-scale trade across international borders (Rodríguez-Pose and Crescenzi¸ 2018). Prior to the emergence of globalisation in the absence of technology it was clearly highly difficult to establish clearly lines of trade based on which businesses could operate overseas. Hence, it can be evaluated that the role of modern technological factors is one of the most important factors that has promoted the closing of the size of the global business environment which has clearly had a positive impact on the overall functionality and operationality of global industries (Friedman, 2005). The advent of globalisation has proven to be highly beneficially in terms of economies as it has facilitated the strengthening of advanced economies while promoting the holistic development of developing countries in regions such as Asia, Africa etc. Factors such as ease of access to labour and the enhanced availability of trade across international borders were initial factors that promoted countries to allow international trade. However, globalisation 3.0 has clearly been powered by modern technologies which aim to improve the value provided by businesses which has clearly enhanced profitability due to the widespread business opportunities at the disposal of a business (Ernst and Chrobot-Mason, 2011).
During the process of globalisation there are two critical factors that have ensures the closing down of the gap between the geographical locations across the globe. The fact that borders have been utilized to mark geographical differences have clearly had reduced in importance as the utilization of modern technologies have clearly resulted in lower dependence on physical transactions. Hence, it can be determined that technology is single most important factor which has contributed towards the enhanced growth of modern business environment through the closing down of the gap in the geographical locations (Friedman, 2005). On the contrary it is believed that separations based on the border have acted as a major contributor towards reduction in geographical distance as it acts as a mode of connection between countries. The absence of clear international borders might have resulted in a lower probability of businesses benefitting from the advent of globalisation in a significant manner due to lack of a clear structure or defined lines based on which the process of globalisation would take place (Hilton III and Wiley, 2011). The second most critical factor that has facilitated the lower of the gap between geographical locations is the advent of enhanced importance of communication which has facilitated an improvement in the overall business environment which is conducive for facilitating enhanced organisational growth by enhancing the coordination and collaboration (Rodríguez-Pose and Crescenzi¸ 2018). Considering that the modern business environment is considered as the era of knowledge and information. It enables businesses to effectively optimize the utilization of its resources towards achieving higher levels of growth irrespective of geographical distances (Friedman, 2005). In that context, it can be evaluated that proper communication and the presence of international borders are two key factors that have promoted an improved ability of modern businesses to effectively achieve growth across international borders. The closing down of international border gaps and flattening of the world has been facilitated primarily due to key factors that are formed because of technological developments (Ernst and Chrobot-Mason, 2011).
Evaluation of Current Changes and Practices
The modern business environment has emerged as vastly transformation and it is clearly evident that the utilization of proper business practices has ensured that businesses are able to effectively to reduce the challenges related to the flattened world such as lack of effective coordination and growing competition caused due to reduction of cross border trade barriers. One of the key trends that have resulted in closing down of the geographical distance is the process of outsourcing which is widely practiced by a larger number of business entities on a regular basis in the modern business environment (Rodríguez-Pose and Crescenzi¸ 2018). The large-scale investments in the technology industry have facilitated an improved ability of business organisations to effectively establish a strong framework based on which it can overcome challenges and establish clear lines of functionality through collaboration and coordination with employees, businesses and governments located in varying geographical regions globally (Friedman, 2005). The ease of accessibility and affordability of computers has proven to be another major factor which has facilitated improved practices that have contributed towards flattening of the world. Hence, it can be evaluated that businesses must prioritize the development of technological frameworks which would allow it to benefit from the varying advantages of globalisation by mitigating cultural, political, social risks (Hersh et al., 2010).
One of the most common examples of how technology has played a key role in reducing the geographical distances is the example of internet which has ensured that individuals can access information uploaded on the internet and have equal availability irrespective of the geographical region where the individual is present (Furst et al., 2017). This clearly depicts that the definition of a flattened world within which the meaning of geographical distances is reduced significantly. Furthermore, the growth in the global information technology environment has also ensured that businesses are less reliant on conducting physical activities and are able to effectively carry out numerous business transactions without any physical exchange of goods or services (Friedman, 2005). The information technology industry is one of the few industries that has been pivotal in defining the flattened world within which organisations function with holistic business units without establishing physical infrastructure at a particular country. The information technology industry has benefitted significantly from the growing relevance of globalisation and flattening of the global business environment (Rodríguez-Pose and Crescenzi¸ 2018).
It is expected that the industry would grow at one of the faster rates in the years to come which clearly highlights the growing dependence on digital businesses and reduced dependence of physical trade. However, in-depth evaluation states that a majority of the businesses and industries still require physical transactions (Hersh et al., 2010). Hence, it can be evaluated that the advent of globalisation has also contributed significantly towards improvement in the trading feasibility of such industries. It effectively facilitates the utilization of improved trade measures and reduces barriers which enhance the possibility of seamless international business transactions which clearly closes down the international gaps (Friedman, 2005). The development of the global technology network has allowed industries to improve trade efficiency and the development of globalized supply chains have ensured that business entities are able to effectively conduct operations across international borders. The above discussions clearly depict that modern information technology and facilities such as internet have not only resulted in lowering of the geographical distances. In fact, it has enhanced the ability of business entities to optimize operations by facilitating the establishment of clear frameworks based on which it is easier to achieve organisational objectives. Multinational corporations and SMEs that prioritize the utilization of technology clearly benefit from an improved ability to achieve objectives through the establishment of an effective strategy. The growth in the utilization of information technology has also flattened the world by reducing inequalities by improving the access of vital information irrespective of social, economic classes. Furthermore, it has acted has a hub of knowledge which have improved the global literacy which clearly contributes towards flattening of the world (Friedman, 2005).
Challenges of the Flattening World
The benefits and advantages of a flattened world is clearly evident as a larger number of industries and global economies emerge as increasingly reliant of the advent of globalisation and technologies to facilitate improved trading capabilities irrespective of international borders and geographical distances (Furst et al., 2017).It is evident that one of the key contributors to the current growth of the global economy is the concept of globalisation which has been facilitated by technological implementation. The benefits of such advanced technologies are unprecedented but it clearly comes with major challenges that may have a negative impact on the functioning of modern society and economies in the years to come (Kolb, Collins and Lind, 2018). The modern era has caused a major information overload which has highlighted the requirement of filtering information and effectively utilizing information that is relevant to a particular entity. Globalisation has clearly acted as a major disruptor which has enhanced the challenges in the modern business environment and it is evident that the businesses that would be unable to adapt to the changes would clearly face challenges due to growing uncertainty and inability to cope-up with the major transformations in the modern business environment (Friedman, 2005).
The challenges of technology have emerged at a rapid pace as its global utilization has grown exponentially in the last few years. The issues related to cyber security and growing concerns related to an enhanced privacy threats has highlighted a major challenge faced by businesses and entities operating on technological platforms (Friedman, 2005). Considering that the backbone of modern globalisation is technology, it is critically important to effectively mitigate challenges related to technologies and ensure proper flattening of the world to reduce global trade barriers and facilitate industrial growth which would directly contribute towards social and economic development across countries (Hersh et al., 2010).
Conclusion
The concept of the Flattening of the World has emerged as increasingly important as global industries and economies transition its practices towards adapting a holistic approach towards facilitating international operations and trade. Government across the globe are reducing trade barriers and encouraging the usage of technology to ensure its industries are able to benefit from the opportunities across the globe. In that context, it can be evaluated that it is increasingly important for industries to benefit from the advantages of large-scale decrease in the geographical distances. Prioritization of proper globalisation practices followed by the proper utilization of modern technologies is they key factors that facilitate the success of the business operations in a flat world.
References List
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