The world is Flat, Globalization, Microeconomics,Technology, outsourcing, fiber Optics, Off shoring

Essay by skipper3245University, Bachelor'sA+, February 2009

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Over the past few decades, globalization has put a major effect on the world, and the constant evolving of technology has caused great competition between corporations and nations. As Thomas Freidman explains in his book, "The World is Flat", globalization has flattened our economy; our "developing world". Technologies such as the internet, Netscape, pay pal and eBay have aided in this process, as well as business strategies such as offshoring, insourcing, open-sourcing, and outsourcing. The innovation of new resources and technologies have affected the world's policies, standards of living, and priorities.

Before the outsourcing of fiber optics, the only way to become successful was to move to America and work. In 1951, India created India's Institute of Technology, a program which gave great education in science, mathematics, and engineering. After the students became educated, they would literally be shipped to the United States and work for American companies. Natives of India became American's "brainpower". This was a great advantage to America because they would hire these highly educated individuals and have them work for minimal pay. "It was as if someone installed a brain drain that filled up in New Delhi and emptied in Palo Alto"(105, The world is Flat). When fiber optic cables were invented in 1996(because of Netscape) Indians no longer had to come to America to work. Instead, they were able to communicate with their American companies through "digital railroads" and never have to leave their homes or families. Prior to this, India had no resources and no contact with the rest of the world. As a nation, it possessed the intelligence and the ideas but lacked financial support and resources. Fiber optics gave India all the resources they needed. It gave them a FREE ride to any resources they wanted, including unlimited information...