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The Dell T heory of C onflict Prevention

The Dell T heory of C onflict Prevention. The global supply chain. The theory: two countries investing in a business together by being part of the same global supply chain, are less likely to go to war. That means….

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The Dell T heory of C onflict Prevention

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  1. The Dell Theory of Conflict Prevention

  2. The global supply chain The theory: two countries investing in a business together by being part of the same global supply chain, are less likely to go to war. That means…
  3. Case Study: Friedman’s Dell Theory of Conflict Prevention Thomas Friedman, The World is Flat, 2005 Argues that globalization has “flattened the world” in a way that has made new forms and tools for collaboration possible
  4. Case Study: Friedman’s Dell Theory of Conflict Prevention Friedman noticed that his Dell computer was made up of parts from a global supply chain that included factories in Ireland, China, Brazil, the United States, and Malaysia and about 400 companies All those players have a vested interest in keeping the supply chain moving
  5. Therefore…. “No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain.”
  6. Case Study: Friedman’s Dell Theory of Conflict Prevention Friedman uses this phenomenon to explain the diffusion of the 2002 India-Pakistan nuclear crisis India is home to General Electric’s biggest research center outside of the US and many other corporations also have large R & D operations in India In 2002 Pakistan and India began massing troops at their borders and their were reports that both sides were threatening to use nuclear weapons General Electric’s 50 acre research and development facility in Bangalore, India
  7. Case Study: Friedman’s Dell Theory of Conflict Prevention The US State Department even issued a travel advisory urging American citizens in India to leave the country A chief information officer from one company probably United Technologies sent an email saying “I am now spending a lot of time looking for alternative sources to India. I don’t think you want me doing that, and I don’t want to be doing it.” that ultimately got forwarded to the Indian ambassador in Washington
  8. Case Study: Friedman’s Dell Theory of Conflict Prevention India quickly realized how important foreign investment had become to its country and that if it could not provide a stable, predictable operating environment for that investment, India would lose it and the economy would suffer Friedman credits this realization as being a significant, but not exclusive reason, for India’s decision to restrain its behavior Claims “That cease-fire was brought to us not by General Powell but by General Electric.”
  9. Businesses likeMcDonald's,
  10. Dunkin’ Donuts,
  11. H&M
  12. and Starbucks
  13. … are actually world peace makers!
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