TRENDS, NETWORKS AND CRITICAL THINKING IN THE 21ST CENTURY

Reviewer

Terminologies:
 Misogyny – a hatred of women; lyrics that promote violence and misogyny
 Trend – a gradual change or development that produces a particular result; recurrent
phenomenon that takes place over time and gives rise to speculation on the future.
 Trends Analysis – is an examination of these phenomena and speculation on the likely
impact they will have in the future.
 Trending – is an important skill in the 21st century affording those inclined a portal into
the future.
 Fad – is something, such as an interest or fashion that is very popular for a short period
of time.
 Globalization – is the process of interaction and integration among people, companies,
and governments worldwide.
 Networks – a group of people or organizations that are closely connected and that work
with each other.
 Deglobalization – opposite of globalization
 David Zach – a futurist, one must be able to notice and play with fads and work and plan
with trends.
Features of Trends
1. Easy – trends do not require many adjustments on the part of subscribers. In fact,
trends are smooth and straightforward to follow.
2. Consistent – trends generate uniform and tangible results. Unlike fads which claim to
deliver results in the often-unrealistic timeframe, trends are steady and dependable.
3. Sustainable – trends exist and can be maintained for a long time. Unlike fads which are
brief and fleeting, trends are for the long-term.
4. Broad application – trends are consumed by a large group of people from different
sectors of society and various walks of life. Unlike fads which are contained in one
segment of the society, trends almost have a general acceptance among people.
The important factors influencing globalization are:
1. Historical: The trade routes were made over the years so that goods from one kingdom or
country moved to another. The well known silk-route from east to west is an example of
historical factor.
2. Economy: The cost of goods and values to the end user determine the movement of goods
and value addition. The overall economics of a particular industry or trade is an important
factor in globalisation.
3. Resources and Markets: The natural resources like minerals, coal, oil, gas, human resources,
water, etc. make an important contribution in globalisation.
4. Production Issues: Utilisation of built up capacities of production, sluggishness in domestic
market and over production makes a manufacturing company look outward and go global. The
development of overseas markets and manufacturing plants in autos, four wheelers and two
wheelers is a classical example.
5. Political: The political issues of a country make globalisation channelised as per political
bosses. The regional trade understandings or agreements determine the scope of globalization.
Trading in European Union and special agreement in the erstwhile Soviet block and SAARC are
examples.
6. Industrial Organisation: The technological development in the areas of production, product
mix and firms are helping organisations to expand their operations. The hiring of services and
procurement of sub-assemblies and components have a strong influence in the globalisation
process.
7. Technologies: The stage of technology in a particular field gives rise to import or export of
products or services from or to the country. European countries like England and Germany
exported their chemical, electrical, mechanical plants in 50s and 60s and exports high tech
(then) goods to under developed countries. Today India is exporting computer / software
related services to advanced counties like UK, USA, etc.

Main reasons that have caused globalisation

1. Improved transport, making global travel easier. For example, there has been a rapid
growth in air-travel, enabling greater movement of people and goods across the globe.
2. Containerisation. From 1970, there was a rapid adoption of the steel transport container.
This reduced the costs of inter-modal transport, making trade cheaper and more efficient.
3. Improved technology which makes it easier to communicate and share information around
the world. E.g. internet. For example, to work on improvements on this website, I will go to a
global online community, like elance.com. There, people from any country can bid for the right
to provide a service. It means that I can often find people to do a job relatively cheaply because
labour costs are relatively lower in the Indian sub-continent.
4. Growth of multinational companies with a global presence in many different economies.
5. Growth of global trading blocks which have reduced national barriers. (e.g. European Union,
NAFTA, ASEAN)
6. Reduced tariff barriers encourage global trade. Often this has occurred through the support
of the WTO.
7. Firms exploiting gains from economies of scale to gain increased specialisation. This is an
essential feature of new trade theory.
8. Growth of global media.
9. Global trade cycle. Economic growth is global in nature. This means countries are
increasingly interconnected. (e.g. recession in one country affects global trade and invariably
causes an economic downturn in major trading partners.)
10. Financial system increasingly global in nature. When US banks suffered losses due to the
sub-prime mortgage crisis, it affected all major banks in other countries who had bought
financial derivatives from US banks and mortgage companies.
11. Improved mobility of capital. In the past few decades, there has been a general reduction in
capital barriers, making it easier for capital to flow between different economies. This has
increased the ability for firms to receive finance. It has also increased the global
interconnectedness of global financial markets.
12. Increased mobility of labour. People are more willing to move between different countries
in search for work. Global trade remittances now play a large role in transfers from developed
countries to developing countries.