The result is not only greater response to market conditions but a reduction in labor and production costs. To foster deconstruction, companies will form strategic alliances as an alternative to making acquisitions or merging. Capabilities can be added, but undue growth and cost can be avoided. Smaller units, the author contends, will lead to the more effective globalization of economies. At the same time the author suggests that, as the world is increasingly made into a single economy, traditional nation-states will become weakened.
National boundaries are no longer important.
He predicts that traditional cultural and ethnic differences will reemerge as a force that will weaken existing nation states. The existing political leadership will be found inadequate for the new economic age. Chapter 2 focuses on the revolution in telecommunications that is driving the new globalized economy. Tourism, the topic of chapter 3, is used as a case study to illustrate the dynamics of the new economic globalization resulting from the telecommunications revolution. Perhaps the greatest impact of technological change is on human behavior.