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Chapter 21.docx

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HIST 1500
William M.Last

Chapter 21:Globalization  Greater transborder data flow, greater international trade, etc. Growth in the service sector  Other contributions to the start of globalization: IT technology  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 Satellites 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).  Production strategy 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 us. 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
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