How Globalization Went Pop, What It Means for Workers

Concepts of entropy may assist in understanding globalization’s ways and its rate of speed, suggests attorney Charles Davi in the Atlantic. Entropy, as law of physics, suggests that nature and energy are in flux – orderly concentrations spread into disorder. Information entropy is a method for measuring diffusion. By analyzing global GDP among nations in 1990 – and nations’ specific contributions – and comparing results two decades later, one can determine how economic growth has spread around the globe. Developments in communication and transportation have minimized the primacy of geography and national boundaries, thus spreading sources for manufacturing, trade and capital. In researching codes that rely on minimal information, mathematician Claude Shannon discovered connections between diffusion and information. “His fundamental observation is straightforward,” Davi writes. “[W]idely distributed data points require more information to communicate, and have higher entropy. More concentrated data points require less information, and have lower entropy.” Technology and automation spur the spread of manufacturing, adding downward pressure on wages for the low skilled. – YaleGlobal

How Globalization Went Pop, What It Means for Workers

Measuring how fast the world economy has "globalized"? Borrow a concept from physics – call it global economic entropy
Charles Davi
Tuesday, April 16, 2013
Charles Davi is a capital and derivatives markets lawyer at a large firm in New York City and a member of the Policy Committee of Concord51. He received his JD from New York University School of Law and BA in Computer Science from Hunter College. He also writes the Kalle’s Kultur blog.
Copyright © 2013 by The Atlantic Monthly Group. All Rights Reserved.

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