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Ahmet Demirbilek – MIS 311-90 – Fall 2010 – Assignment 1

Flattener #1: Off-Shoring is one of the main components that boost globalization in an
effective way. Globalization has gained a rapid movement with engaging of China to
World Trade Organization so that off-shoring increased competitiveness in globalization.
In addition, a study has done by Duke University in 2006, shows that the companies
offshore due to the fact that they need to find employees who they cannot find at home
country. For example, US companies needed more than 50.000 graduates with master
and PhD degrees. That’s why; companies turn their faces to somewhere they can find
skilled workers who are easy to find in India, China or any other countries which are
suitable. Moreover, low cost labor force is another reason to offshore so; companies can
find what they need to sustain product development, innovation or engineering. Also off-
shoring enables cost reduction by design which determines %80 of total cost.

Flattener#2: Open Source can be described as a reaction to capitalism which enables


everything for money. An open source product is free to use for everyone and all sources
are open for everyone wanting to contribute, such as Wikipedia, Mozilla Firefox and Linux.
Open source is the main competitor for companies such as Microsoft or any others in
software business. Open source products have many advantages. First of all, they are all
free and users can reach easily. For example, internet browsers other than Internet
Explorer, have a market share that can’t be ignored at all. In 2007, Microsoft Internet
Explorer had a market share about %79.However, in august 2010, IE had %60 of market
share. In other words, other browser has been increasing their market share. IE has an
increasing movement for September 2010 because of success of IE 9 which looks like
chrome. Apache HTTP server would be the best example to understand why open source
is so important Apache has a key role for World Wide Web which we all have to use. It
surpassed amount of 100 million web sites in 2009. It allows you to create dynamic web
pages that are created by using the freshest information so it is best for ecommerce sites
or any others. Furthermore, open source is the most effective way in saving money.
According to a report released by Standish Group, Open source software applications
have saved about $60 billion per year. That allows households and companies spend this
money for other necessities.

Missing Flattener: Adam Smith, I think that missing flattener should be Adam Smith.
As everybody knows he is cited as “father of modern economy”. Because, he is the one
who created today’s economy. We have been just building on it by using technologic
advances, sciences etc. In fact, we have been just trying to manage what he created in
his mind. He supported free trade among nations. Free trade has increased productivity
by allowing nations by specializing in what they produce well. Yet, his ideas were
depending on theories of absolute and comparative advantage. The governments which
follow his steps are just making necessary legislations that allow companies trade more
freely. According to Smith, the government should only provide law and order to ensure
security and subsidize the education of people.

References:

Off-shoring: http://www.halfcostproducts.com/offshore_manufacturing.htm

https://offshoring.fuqua.duke.edu/mediarelease_oct06.jsp

Open Source: http://en.wikipedia.org/wiki/Apache_HTTP_Server

http://www.netmarketshare.com/browser-market-share.aspx?qprid=0

http://www.netmarketshare.com/browser-market-share.aspx?
qprid=0&qpcal=1&qpcal=1&qpcal=1&qpcal=1&qpcal=1&qpcal=1&qptimeframe=Q&qps
p=46

Adam Smith: http://phoenix.liu.edu/~uroy/eco54/histlist/smith/smith.htm

http://www.vanderbilt.edu/AnS/Anthro/Anth234/Adam%20Smith1.htm
Word Count: 543

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