Module 7

Friedman begins chapter 10 in reference to how once productive countries, such as Mexico, at one time had a tight lid on their exports to the United States. Since the flattening of the world, Mexico has seen a sharp decline in typical goods Americans were accustomed to being seen as Mexican imports. These have now been replaced with exports from China. The same holds true in Egypt, where the fawanis, which has long stood as a traditional lantern in that country, has now been replaced by a Chinese export that is of higher quality and cheaper price. This begs the question, why has China taken a strangle hold on exports to foreign markets? Mexican and Egyptian markets both have cheap labor, so why can they not duplicate China's success? Freidman begins by stating that countries need to be honest with themselves. It's a bit like attending an alcoholic anonymous class; they must first admit to themselves that they have a problem and that they have underperformed in the global market.

Friedman states to answer this question, it really comes down to a country's decision to develop when the world becomes flat. There are four major aspects to accomplish this. First, a county must have the right infrastructure to connect to the rest of the world. The second is the right education system to get more, and the most, out of its people. The third is the governance of the people, meaning the correct fiscal policies and the rule in law must be in place. This one actually makes a lot of sense, but at the same time, China is not a country I associate with having perfected the science of human rights, and getting the most out of its people. The fourth is having the right environment. Countries that preserve their environments, in other words lean towards being “green”, have a much higher probability of attracting knowledgeable workers who are decisive in turning around developing countries. One quote from the book that resonated well was me is “Productivity, growth and, hence, the way out of poverty, is not simply a matter of throwing resources at a problem, say Klein and Hadjimichael. More important, it is a matter of using resources well” (pg 412). I think this holds true in many aspects of a flatter world, and is a simplified answer to why some countries outperform others.

"And the big shall act small” is a quote from Friedman's rules about how companies shall cope. In this respect, companies need to be increasingly mindful about customization on the consumer's part. By “enabling their customers to act very big”, giving the consumer choice is what Friend refers to as the “self-directed consumer”. To answer the question, am I a self-directed consumer? The answer is a resounding yes. The very first thing that enters my mind when I think of this philosophy is Burger King, “have it your way”. Just the other day, I was given the assignment of purchasing some color printers for a couple of our branches. The two main things I was interested were that it could print color, and that it could scan to an FTP site. As I did some comparisons on just one brand (Brother), searching for those features I was in need of, I went through the list and there must have been 30 different models with those options. I thought to myself, why are there so many? This simply complicates my decision. Customization is found in a lot of things we buy, from computers and cars, to food at the grocery store. The options seem to be endless, and I think we, as consumers, demand these type of options in today's flatter world.

In the little bit of international traveling I have done, I did see familiar sites that resonate with American culture, such as McDonalds, Coke, and Hollywood. I would have to say at this point in time, “globalization” does mean “Americanization”. But as Friedman writes, uploading is a powerful tool, one that will continually evolve the way people interact with others at all levels, and I believe this could be a factor in changing the so called “Americanization” in global markets.