Question

Course: Comparative politics

Module 01 Discussion - Is the World Flat?

Thomas Friedman's book, The World Is Flat: A Brief History of the Twenty-First Century, contends that "the convergence of technology and events that allowed India, China, and so many other countries to become part of the global supply chain for services and manufacturing, [created] an explosion of wealth in the middle classes of the world's two biggest nations, giving them a huge new stake in the success of globalization..." He continued by writing that with "this 'flattening' of the globe (which) requires us to run faster in order to stay in place... (brings us face to face with the reality that) the world has gotten too small and too fast for human beings and their political systems to adjust in stable manner..."

Share your thoughts with the class about one of the following questions, all of which refer to "the world is flat" quotation. For more information on Friedman, visit his website at: http://www.thomaslfriedman.com.

Are the material incentives in China and India likely to make those middle class workers more supportive of a global economic and cultural system? Why or why not?

How do you account for the anti-globalization reactions of terrorism?

Are the new opportunities for Asian workers a threat to American workers? (Is this a zero sum situation?)

Will political systems be unable to maintain stability? Explain.

Answer 1

1.
The incentives make middle class workers to be more supportive of the global economic & cultural system, because the incentives come to these workers when the export grows and export only grows when there is a rise in international trade with the different nations. Here, the globalization facilitates international trade and these nations such as India and China, become places of global sourcing. It is only possible, when middle class workers support the global economic system.

2.
Terrorism brings anxiety, fear and doubt in one nation who suffers from the terrorism, about the other nations. It makes the nations to make stringent policies that bring not only brings safety and security to the homeland, but also restricts immigration. Even, people from some of the nations are barred from entering the country. These developments may favor a homeland security, but negatively affects the globalization and international trade. So, terrorism acts as a catalyst to the anti-globalization.

3.
New opportunities for the Asian workers, act as a threat to the American workers in the short run, because Asian workers as immigrants can take the jobs at lower wages, that could have gone to the American workers in the USA. But, in the long run, these Asian workers create additional aggregate demand and bring additional skills, so it makes firms to produce more and create new jobs for the American Workers. So, the threat is created in the short run, but not in the long run.
Political systems promote globalization and open up economies for the overseas MNC enterprises, it brings more dynamism and volatility to the business environment in the short run and establishes a new order in the economy in the long run that is more stable. So, it is the regulatory framework and sound economic policies, that affect the degree of stability to be achieved by the political system in the countries.