News>2009.01.04

 

【Column】"Globalization is happening (No.1)"

 

The world is no longer round but flat.

Off course, it does not mean physical phenomenon but metaphorical expression, which describe increase in transactions of goods, people, money and information by development of Internet Technology and global corporate activity. The author of bestseller " The world is flat" in US, Mr. Thomas L. Friedman defined the world movement as simply terms; Flat world, in which world competition shift from in developed countries to in emerging countries, from by corporate entities to individuals.

Mr. Friedman is not alone. Eventually phenomenon of global shrinking physically mentally is happening, and has now already happened to the great extent. I can see signs of shrinking and flatting the earth from recent events such as information accessed and shared cross border, business outsourcing in India and China, changes in employment contract and increases in unemployment rate in developed countries such as in US, and world wide economic crisis triggered by sub prime loan in U.S. One of the authors of Globality, Mr. Sirkin and others pointed out the trend of global markets, in which every player, regardless of developed or emerging countries, local or global enterprises, corporate or individuals, they are all competing with each other. He defined the trend simply "Globality", meaning global reality every one is facing. Tsuami of globalization, its influence is not only others affairs but everyone's. In global reality making flat world, everyone can be competitor.

This worldwide trend is not faraway event from each country. Economic crisis and new business model at one country affect financial market, employment, and market growth and decline at other countries. After all, interdependency between countries and regions constantly has increased. As global trend, wave of globalization does not stop to go on all over the world. It indicates the beginning of new era for every one to compete each other. It is like when U.S. sneezes, others catch a cold. In the flat world with high interdependency, people, goods, money, and information do not suffer restriction of nations, and trigger off worldwide distribution and selection of these.

The world is surely getting flat though, it has yet a long way to becoming flat. Any distribution of goods and services across border is restricted by regulations and laws of nations. Needless to say people, goods, and money, even information can be a unit to be regulated by nations. For example, Google search service in China has removed unwelcome web site from Chinese government’s perspective, since Google accepted strong intervention from Chinese government. Still the world is not yet flat but getting flat.

Most of business entities provide localized product and services in order to meet local demands. It is no doubt that global market is becoming even more flat in the future. In the near future, next 50 years, a unit of nation may disappear from flatting pressure.