Friedman divides globalization into three eras (1.0, 2.0, 3.0). Please briefly describe the main characteristics and driving forces of each of these three eras.

Sure, no problem. Let me break down the three eras of globalization as described by Friedman in The World Is Flat in plain language. Think of it like a three-act play, with the main actors changing each time.

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Friedman's Globalization Trilogy: The Evolution from Nations to Corporations to Individuals

Imagine the process of connecting people and activities worldwide as a piece of theater. Thomas Friedman divides it into three acts, each with entirely different protagonists and driving forces propelling the narrative forward.

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Act 1: Globalization 1.0 (The Age of Nations)

• Time: Roughly from 1492 (Columbus’s voyage) to around 1800.

• Main Characteristics:

  • Protagonist: Nations: The stars of this era were nations and governments. Think of maritime powers like Spain, Portugal, and Britain. When they sent out fleets, the goal wasn't individual wealth, but how their nation could conquer more land, open new trade routes, and secure more resources.
  • Core Question: “How does my nation establish itself in the world?” All actions centered around national power and glory.
  • World Transformation: This era shrank the world from "Large" to "Medium." Previously separate continents, dwelling in isolation, were suddenly connected through voyages, leading to direct contact and confrontation between nations.

• Key Drivers:

  • Simply put: National "brute force." More specifically, the muscle, horsepower, and wind power of states: stronger ships, bigger cannons, braver sailors, plus the government's ability to organize and deploy these resources.

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Act 2: Globalization 2.0 (The Age of Corporations)

• Time: Approximately from 1800 to 2000. This lengthy era can be split into two halves.

• Main Characteristics:

  • Protagonist: Multinational Corporations: With the advent of the Industrial Revolution, corporations took the lead from nations. It was no longer kings dispatching fleets, but companies like the Dutch East India Company, Ford, IBM, and Coca-Cola actively expanding worldwide in search of markets, labor, and resources.
  • Core Question: “How does my company globalize?” Corporate strategy departments focused on finding the lowest-cost manufacturing sites and the most profitable markets.
  • World Transformation: This era shrunk the world from "Medium" to "Small." Multinationals used railroads, steamships, telephones, and airplanes to tightly integrate global markets and production bases.

• Key Drivers:

  • Technological breakthroughs, particularly in "hardware" innovation.
    • First Half (1800 - Post-WWII): Dramatic reduction in transportation costs. Steam engines, railroads, and steamships enabled the mass movement of goods and people across borders.
    • Second Half (Post-WWII - 2000): Dramatic reduction in communication costs. Telephones, telegraphs, satellites, fiber optics, and early personal computers made information transfer increasingly cheap and fast.

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Act 3: Globalization 3.0 (The Age of Individuals)

• Time: From around 2000 to the present. This is the "World Is Flat" era described by Friedman.

• Main Characteristics:

  • Protagonist: Individuals: This is the most transformative change. The stars of globalization are no longer massive nations or corporations, but ordinary individuals like you and me. An engineer in India can work on a project for a U.S. company via the internet; a seller in China can sell products to customers in Brazil on Amazon.
  • Core Question: “How do I, as an individual, participate in global competition and collaboration?” Individual capabilities are vastly amplified and empowered.
  • World Transformation: This era has shrunk the world from "Small" to "Tiny," and simultaneously "flattened" the competitive playing field. Whether you're in New York or Bangalore, if you have an internet connection and ideas, you can compete and collaborate with anyone globally. Geographic barriers have been significantly reduced.

• Key Drivers:

  • The rise of internet-centric "software" and "collaborative platforms." Friedman calls these the "Ten Great Flatteners." Simply put:
    1. Connection Platforms: The spread of personal computers (PCs), the emergence of internet browsers (like Netscape), and the roll-out of fiber-optic networks created a digital platform anyone could access.
    2. Collaboration Models: Innovations in software and business models, such as outsourcing (contracting out business functions), offshoring (building factories abroad), open-source (collaborative free software development like Linux), supply-chaining (efficient global logistics management, like Walmart), and search engines (like Google enabling access to information).
    3. Empowerment Accelerators: The proliferation of wireless technology and mobile devices allows participation in globalization anytime, anywhere, like adding turbochargers to the process.

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Summary

To help you remember, here's a simple table:

Hope this explanation helps you better grasp Friedman's classic theory!