Greater transborder data flow, greater international trade, etc. Growth in the service
Other contributions to the start of globalization: IT technology
o Microsoft innovated top-down programming. Microprocessor speed and
miniaturization were also important.
o The government invested in these innovations
o Industrial policy: government financing of technology
o The internet also helped push the IT revolution. Came from Arpanet.
o All of these things constituted a communications infrastructure that allows
information to immediately travel across borders.
Labor strategies were also important in globalization (outsourcing, etc).
o Agile manufacturing – the ability to improve a product while it’s still being
assembled to keep up with competitors
o Supply chain management – the ability to manage, costwise and logistically,
everything you might need in your manufacturing process. Vertical integration
o JIT – just in time
Edwards Dimmings – engineer during WWII, expert on mfg. The govt hired him to make
mfg more efficient in this country. He went to Japan and he became the manufacturing
guru for Japan, helping them exponentially. He taught them to focus on quality, not
quantity to save money.
By 1970s, the US auto industry was interested in talking to Dimmings for help. He came
to Ford and told them to negotiate longer contracts with unions so they’d know what their
costs would be.
Dimmings’ theories are still in use.
John Boyd – had been a fighter pilot in Korea. He began noticing that American jets
always shot down the Chinese and n Korean jets, even though they were slower and not
as good. He came up with the ooda loop theory. Observe, orient, decide, act. Then the
process starts over again.
In 1980s, IBM hired Boyd. Boyd figured out that IBM wasn’t moving fast enough to
keep up with competition.
These strategies helped globalization in the 1980s.
Increased privatization. Many companies looks at the united states and wanted to emulate
o The Russian national gas co was sold to private investors.
o ARAMCO oil.
o The purchasing of water, food, etc. ¾ of fresh water consumed in