Question

Please read this article before answering questions,"New World Order: Labor, Capital and Ideas in the Power Law Economy".

Article link: https://www.philadelphiafed.org/-/media/research-and-data/events/2015/fed-policy-forum/papers/brynjolfsson-new_world_order.pdf?la=en

Questions:  Must be a total of 350 words!

1. What is the relationship between globalization and technology in bringing about more innovation?

2. Why is what the authors call the "second machine age: important?

Answer 1

Answer 1:- Technology has made it easier for globalization to occur. The technology provides a much easier approach to connect countries and the global marketplace. The technology has aided the approach by making it even more convenient. This convenience is through cheaper and easier communication and the ease of producing and introducing new products to the global marketplace. Innovation is benefitted in the rapid increase of technology and the newly developed ease that arises with it. This innovation is encouraged and capitalized upon as the fortune is slowly transitioned away from the original parties and into the pockets of people with innovative ideas. Having innovative ideas, products, services, and business models is the differentiating factor in a world where everything is so easily copied due to the increasing technology(Brynjolfsson, McAffee, & Spence, 2014). Currently, many companies are competing on cheap labor. This is one of the deciding factors on whether a company will be competitive or successful. This is the reasoning for many companies outsourcing the production to China, where labor is cheaper. As technology is slowly replacing the need for human labor, this will no longer be a deciding factor for how successful a company will be. The new deciding factor will be ideas (Brynjolfsson, McAffee, & Spence, 2014). Companies will be required to assemble innovative ideas in exchange for success. Therefore, the need for new ideas due to the increase of technology encourages innovation.

Answer 2:- The authors refer to the second machine age as an era driven by digital technologies (Brynjolfsson, McAffee, & Spence, 2014). These digital technologies are changing the global marketplace at a pace that is unpredictable. This predictableness makes it difficult for companies to forecast and adjust to what the future and technological advances will hold for them individually as well as the global marketplace as a whole. It is mostly important due to the way it will change many of the aspects that are relied on to be successful. It is transforming labor and product markets and has the potential to transform education as well (Brynjolfsson, McAffee, & Spence, 2014). Although these changes will bring about increases to wealth and economic efficiency, it will not work out advantageous for everyone. One party in particular that will not be at an advantage in this era is ordinary workers. In other words, the economic inequality will continue to increase. This era is important because it will bring about many changes that the world needs to be prepared for. While some of these changes are advantageous, others are not. Countries should be prepared to adjust to the second machine age to combat the disadvantages and capitalize on the advantages

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