Openness and Stability - Riding the J Curve
"Imagine a graph on which the verticle axis measures a country's stability and the horizontal axis measures its social and economic openness. Each nation appears as a data point on the graph.
These data points produce a pattern very much like the letter J. Nations to the left of hte dip in the Ja are less open; nations ot the right are more open. Nations higher on the graph are more stable; those that are lower are less stable.
"Openness" is a measure of the extent to which a state allows people, ideas, information, goods, and services to freely cross its borders. Openness also refers to the flow of information and ideas within a country's borders.
A state's " stability has two components: its capacity to withstand shocks and its ability to avoid producing them. A nation is unstable only if neither is present. ..."
The article doesn't provide a J-graph to view, and the book is not yet out in the stores.
Based on the article, I'd say there is a corollary with business. That healthier businesses are ones that are more open and exhibit the kind of stability he describes. Interesting thought to consider.
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