Globalization 3.0 and its Effects on Computing
Stephen Barnes
SDC I – October 2nd, 2007
Introduction
The worldwide effect known as Globalization is evidenced everywhere you look. Just a
cursory glance in one’s pockets could reveal a key ring made in China, flash memory from
Korea, or a cell phone produced in Taiwan. An average computer can have parts that come
from over 400 companies worldwide (Friedman 520). Globalization has been a factor in the
worldwide economy for centuries now, but Thomas Friedman has divided it into three separate
eras. Globalization 1.0 was 1492 to 1800, Globalization 2.0 was 1800-2000, and Globalization
3.0 is 2000-present (Friedman 9). The main factor that differentiates Globalization 3.0 “is the
newfound power for individuals to collaborate and compete globally.” (Friedman 10) In the
middle of this shrinking of the world sits computing. Because of technology, communication
and global business practices that were could only have been fantasy 20 years ago are now
reality.
Globalization brings about many ethical challenges to the table. One of the easily seen
debates is against outsourcing. Namely, should a company outsource a job to stay competitive
in a global marketplace, or should it rely on its local workforce to ensure loyalty to its workers.
Other considerations have to be taken into account that deal directly with computing, such as
the fact that it is illegal to personal tax information from another state/country. However,
because of modern computing you may remotely log into the computer that is located in the
state where the data is held. The effects of globalization are far reaching, and I will discuss
some of the positive and negative aspects as they are related to the future of computing.
Benefits of Globalization
The benefits of Globalization are immediate as the world becomes flat. Efficiency is
increased, profits are raised, and product development times are drastically reduced. Ethically
a company is responsible to its shareholders, and as such it is the company’s responsibility to
deliver profits and an expanding business. Logically, many businesses look to India as a back
office and China for manufacturing because of their high efficiency, exchange rates, and large
workforce. Computing is especially evident in India. For example, in 2005 roughly 400,000 US
tax returns were outsourced to India from middle level CPA’s using work flow software
(Friedman 13). Data security is an important issue – all of the data stays in the US and the
Indian accountant cannot see important information such as name and Social Security Number
(Friedman 13). Ethically the data must be at least this secure to protect the customer who does
not know that their tax form is being filled out halfway across the world.
Andrew S. Grove, previous CEO of the Intel Corporation, has a motto that “Only the
paranoid survive.” (Grove) This may not seem a benefit at first glance, but it is a hint as to how
fast the technology industry is moving. According to Grove strategic inflection points, a
fundamental change in business, are often brought on by technology. Being at the forefront of
both Globalization and developing business strategic inflection points means that ethics in the
field of computing must excel.
Finally, computer communications technology has allowed the world to become a fully
24/7 business. The time difference between the US and countries such as India and China has
decreased cost for service during night hours in the West. As a result, global supply chains can
be set up such as the one implemented by Dell. By implementing global supply chains, cost is
decreased and response time to the customer is also similarly reduced.
Negative Effects of Globalization
The most easily seen negative effect from globalization has been the widespread
organization of terrorist networks. Terrorist networks can use the same outsourcing, training,
and supply chain style networking of a flat world to quickly, efficiently, and most importantly –
anonymously – organize themselves (Friedman 530). Another aspect that makes globalization
particularly difficult is the corruption and lax intellectual property rights in countries such as
China (Galef). Adding countries with rampant intellectual property problems discourages
innovation – especially in the high tech and software areas.
In some countries emerging in the global economy there is a growing rural vs. urban
inequality as the rural areas are not able to stay competitive with global businesses running in
the major urban areas (Galef). Yet again, the ethical dilemma concerns protecting jobs in one’s
home country as opposed to globalizing. One possible solution to this is to use computers and
the internet to allow for unprecedented connection to rural areas. Because of the
development of communication systems, work flow software, and the personal computer, it is
now possible to work from locations outside of a centralized office more than ever.
Conclusion
Computing is the biggest reason why the world is becoming flatter and why we are in
Globalization 3.0. While globalization may not be the preferred path for some, it is a concept
that is here to stay. The global ramifications of business and technology now mean that there
should be even more emphasis on ethics in business practices and on the individual level. As
computer engineers and computer scientists entering the workforce, we are the voice of the next
generation of the flat world. In order to make Globalization work our voice will have to be ethically
strong and clear.
Works Cited
Friedman, Thomas L. The World Is Flat. New York: Farrar, Straus and Giroux, 2006.
Galef, Richard Vietor and Julia. "China and the WTO: What Price membership?" Case Study. 2006.
Grove, Andrew S. "Only the Paranoid Survive: Book Preface." 1996. 30th September 2007
<http://www.intel.com/pressroom/kits/bios/grove/paranoid.htm>.
Globalization 3.0 and its Effects on Computing
Stephen Barnes
SDC I, October 2nd, 2007
Questions – suitable for an assessment exam on this topic
Q1: What version of globalization are we currently in?
A1: Globalization 3.0
Q2: What is one benefit from Globalization?
A2:
Efficiency
Profits increased
Shorter Development Periods
Global Supply Chains
True 24/7 businesses
Q3: What is one disadvantage to Globalization?
A3:
Terrorists can use it too
Corruption and Intellectual Property Rights issues
Rural vs Urban problems