Dell Theory
Dell Theory is world widely known theory that implies that there will be no war between two countries as long as they are in the same supply chain. This theory has been upgraded by Thomas Friedman, in which he states that in the current conditions, two countries depend on each other as long as they are in the same supply chain and thus would never engage in the war in order not to destroy their economies. The current short essay offers the reader introduction to the concept of Dell Theory.
Furthermore, because of the premises of Dell Theory, empirically it can be seen that countries that do not have high dependency of economy on other countries are highly aggressive in military terms, i.e. Iraq, North Korea. Countries are unlikely to engage in the war because there are present companies that invested in these countries want to be insured that no political instability would occur and cause an unpleasable effect on their business. As an example China and Taiwan can be presented. Both economies have high dependency on each other and regardless of their historical conflicts; none of them will likely attack each other.
If we look at the example of Japan and China- two strong countries, both countries have had poor relationships because of the struggle over gaining the power over Asian territory. However, today in the conditions of “flat world” despite of mutual some kind of hatred two countries ceased to co-existence. It is described in the book that this state of affairs occurred because economies integrated in world supply chain tasted what it is to have stable economy and have no longer desire to take part in the conflict.
In conclusion, summarizing the collected data on Dell Theory, it can be stated that taking in example such countries as Iraq, North Korea, China and others Dell’s Theory might have good premises for future prospect. The correlation between integration in world supply chain and political stability within country can be clearly seen.