Dell Theory of Conflict Prevention
Encyclopedia
The Dell Theory of Conflict Prevention, also known as simply the Dell Theory, has been presented by Thomas Friedman
in his book The World Is Flat
. This theory is an updated version of his previous "Golden Arches Theory of Conflict Prevention".
operations in countries other than that corporation's home country, those countries will never engage in armed conflicts. This is due to the economic interdependence between nations that arises from a large corporation (such as Dell
) having supply chain operations in multiple global locations and the reluctance of developing nations (in which supply chain operations commonly take place) to give up their new found wealth.
In his previous book The Lexus and the Olive Tree
, Friedman argued that no two nations with a McDonald's
franchise had ever gone to war with one another: this was known as the Golden Arches theory. Later, Friedman upgraded that theory into the "Dell Theory of Conflict Prevention" by saying that people or nations don't just want to have a better standard of living as symbolized by McDonald's franchise in their downtown, but want to have the lump of the labour sector that is created by globalization
. That is, developing nations do not want to risk the trust of the multi-national companies who venture into their markets and include them in the global supply chain.
Thomas Friedman
also warns in his book The World Is Flat
that the Dell Theory should not be interpreted as a guarantee that nations who are deeply involved in global supply chains will not go to war with each other. It rather means that the governments of these nations and their citizens will have very heavy economic costs to consider as they contemplate the possibility of war. These costs include the long-term loss of the country's profitable participation in the global supply chain.
This theory relates with how conflict prevention occurred between India
and Pakistan
in their 2001 - 2002 nuclear standoff, where India was at risk of losing its global partners. The relationship between the People's Republic of China
and Taiwan
was also cited as an example of this theory - they both have strong supply relations with each other and a war between the two seems very unlikely today.
Thomas Friedman
Thomas Lauren Friedman is an American journalist, columnist and author. He writes a twice-weekly column for The New York Times. He has written extensively on foreign affairs including global trade, the Middle East, and environmental issues and has won the Pulitzer Prize three times.-Personal...
in his book The World Is Flat
The World Is Flat
The World Is Flat: A Brief History of the Twenty-First Century is an international bestselling book by Thomas Friedman that analyzes globalization, primarily in the early 21st century. The title is a metaphor for viewing the world as a level playing field in terms of commerce, where all competitors...
. This theory is an updated version of his previous "Golden Arches Theory of Conflict Prevention".
- “The Dell Theory stipulates: No two countries that are both part of a major global supply chain, like DellDellDell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...
’s, will ever fight a war against each other as long as they are both part of the same global supply chain.”
Description
That is, as long as corporations have major supply chainSupply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
operations in countries other than that corporation's home country, those countries will never engage in armed conflicts. This is due to the economic interdependence between nations that arises from a large corporation (such as Dell
Dell
Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...
) having supply chain operations in multiple global locations and the reluctance of developing nations (in which supply chain operations commonly take place) to give up their new found wealth.
In his previous book The Lexus and the Olive Tree
The Lexus and the Olive Tree
The Lexus and the Olive Tree is a 1999 book by Thomas L. Friedman that posits that the world is currently undergoing two struggles: the drive for prosperity and development, symbolized by the Lexus, and the desire to retain identity and traditions, symbolized by the olive tree...
, Friedman argued that no two nations with a McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
franchise had ever gone to war with one another: this was known as the Golden Arches theory. Later, Friedman upgraded that theory into the "Dell Theory of Conflict Prevention" by saying that people or nations don't just want to have a better standard of living as symbolized by McDonald's franchise in their downtown, but want to have the lump of the labour sector that is created by globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
. That is, developing nations do not want to risk the trust of the multi-national companies who venture into their markets and include them in the global supply chain.
Thomas Friedman
Thomas Friedman
Thomas Lauren Friedman is an American journalist, columnist and author. He writes a twice-weekly column for The New York Times. He has written extensively on foreign affairs including global trade, the Middle East, and environmental issues and has won the Pulitzer Prize three times.-Personal...
also warns in his book The World Is Flat
The World Is Flat
The World Is Flat: A Brief History of the Twenty-First Century is an international bestselling book by Thomas Friedman that analyzes globalization, primarily in the early 21st century. The title is a metaphor for viewing the world as a level playing field in terms of commerce, where all competitors...
that the Dell Theory should not be interpreted as a guarantee that nations who are deeply involved in global supply chains will not go to war with each other. It rather means that the governments of these nations and their citizens will have very heavy economic costs to consider as they contemplate the possibility of war. These costs include the long-term loss of the country's profitable participation in the global supply chain.
This theory relates with how conflict prevention occurred between India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
in their 2001 - 2002 nuclear standoff, where India was at risk of losing its global partners. The relationship between the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
and Taiwan
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...
was also cited as an example of this theory - they both have strong supply relations with each other and a war between the two seems very unlikely today.
See also
- Big Mac IndexBig Mac indexThe Big Mac Index is published by The Economist as an informal way of measuring the purchasing power parity between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries...
- Golden Arches Theory of Conflict Prevention
- MadonalMaDonalMaDonal is a restaurant located in the town of Sulaymaniyah, Iraqi Kurdistan. It intentionally resembles McDonald's, both in appearance and menu; for instance, MaDonal's menu includes "Big Macks." It is one of two McDonald's-like restaurants in the town; the other one, Matbax, claims that MaDonal...
- The World Is FlatThe World Is FlatThe World Is Flat: A Brief History of the Twenty-First Century is an international bestselling book by Thomas Friedman that analyzes globalization, primarily in the early 21st century. The title is a metaphor for viewing the world as a level playing field in terms of commerce, where all competitors...