Module 1

Globalization is defined by Friedman as three great eras, with the first beginning in the year 1492. Friedman calls this first era Globalization 1.0. The important event that began this era was the sailing of Columbus and his discovery of the New World. This event opened trade between the Old World and the New World, which shrank the world from size large to size medium. This era was defined by countries and their muscles. The focus was on how much horsepower, wind power, and steam power the countries could produce. Countries asked themselves how they fit in and how to collaborate with other countries. This was prevalent until the year 1800.

The second era, Globalization 2.0, began in 1800. This era was marked by three great events: World Wars I and II, and the Great Depression. This era shrank the world from a size medium to a size small. Driving this era was the introduction of multinational companies. These multinational companies went global for labor and their markets. Global integration was powered by the steam engine, railroad, and later on by diminished communication cost thanks to new technologies such as telegraph, telephones, satellite, and the birth of the World Wide Web. This era marked the true beginning of what we now see today as a global economy. Questions asked in this era were, where does my company fit in this global economy, and how to take advantage of its opportunities. This era lasted until the year 2000.

The third era, Globalization 3.0, began in 2000. This era shrank the world from a size small to a size tiny. This era is driven by a new found force; the power for individuals and small groups to collaborate and compete globally. This phenomenon, which empowers and enjoins individuals and groups globally, is defined by Friedman as the flat-world platform. This convergence of the personal computer and fiber optic communication enabled individuals to become their own author. It enabled endless access to digital content around the world at next to no cost.

In this new era in globalization, companies are ever more outsourcing their needs and resources to more economical and philosophical business needs. With the onset of this new era's developing technologies, it allows for your accountant to be on a sunny California beach while he prepares your taxes, or he might even want to outsource the preparation of them to a company in India. It allows companies to decrease cost by implementing call centers where it is most feasible and cost effective.

Friedman finds that the fall of the Berlin Wall tipped the balance of power across the world toward those in favor of a democratic, consensual, free-market-oriented governance. It took movement away from those who are in favor of an authoritarian rule and centrally planned economies. This brought forth more economies who would be governed from the ground up, by people's interests, demands and aspirations.

The internet, otherwise known as the World Wide Web, was originally designed for scientists to share their research more easily. It was not very useful to the average person upon its invention. The World Wide Web simply consisted of computers, cables, protocols, an imaginary rooms of space containing information. It contained documents, videos, sounds and information, but unless you knew how to specifically access that information through URLs, it had little use. A tiny start-up company in Mountain View, California created a new piece of software that was easy to install and use called Netscape. After its invention, the world would not be the same. The Netscape browser brought the internet alive, and made the internet accessible to everyone. Suddenly, all of those documents, videos, and sound files had a place, and an easy way to access them.

Since the beginning of the third era, as Friedman puts it, things have taken off rather rapidly. In the prior eras, it took years and years for countries and companies to learn how to adapt and evolve. With the speed that information moves in today, it takes a lot more effort to stay on the cutting edge of these technologies. This has brought forth good and bad. It's great to be able to access information whenever one wants or needs it, but it has also brought forth companies moving jobs from the USA to countries with lower wages to save cost. This can be frustrating on two levels; one, the absence of jobs in this country, and second, having to deal with those people over the phone for technical issues.