Module 7: The World is Flat (Chapters 10-13)

Friedman describes how one country is better at some things than other countries.  For instance, when an entrepreneur starts a business, each country has a certain number of days before the business opens.  If the entrepreneur has clients lined up to buy his products or services, the entrepreneur needs a short start-up time in order to keep clients.  If the start-up date takes too long, the clients will most likely go somewhere else so that they can get the product they need.  To start a business in Australia, the duration takes two days, but in Haiti and Democratic Republic of Congo it takes 200 plus days.  So, it is easier to start-up a business in some countries than it is for others.

            Ireland has a competitive advantage over many of its European counterparts. Ireland has put itself in a good position for business development by cutting corporate taxes to 12.5%, moderating prices, aggressively seeking foreign investment, and moderating wages.  Also, Ireland has made going to public college virtually free, which has assisted Ireland with developing a well educated workforce.  By implementing these methods, Ireland has attracted businesses that have had a positive effect. 

Friedman talks about the basic formula for economic success. The steps for the success are reform wholesale, reform retail, good governance, education, infrastructure, and the ability to glocalize.  Ultimately, countries succeed more than other countries because of their culture and countries that have less constricting barriers are the ones that will develop most quickly.

           

            Friedman introduces the concept of self-directed consumers, which has revolutionized the way products and services are offered, sold, and bought.  With the help of the internet, self-directed consumers now have an innovative bridge that assists them in searching, finding, comparing, and buying. 

            Searching has come far from when the internet was in its infancy.  When an item is searched, options are available to see pictures, videos, compare prices, and find local shops that stock the item.  After searching for the item or service, the specific product/service must be found.  Finding consists of deciding on the product or service, which will best fit the needs of the consumer.  Comparing can be something interesting to do.  Virtually everything can be found at a less expensive price.  Also when comparing, companies can offer features such as returning merchandise, free shipping, and extended warranties.  To find the right product for the right price, one must compare all features.  These reasons are why comparing products and services take the most time.  Buying is probably the easiest step in the process. So many ways are offered to be able to pay for the product or services wanted, such as PayPal, and every credit card available.  This is how a consumer is a self-directed consumer.  The consumer uses the flat world to his or her benefit.  I consider myself a self-directed consumer as long as I’m not in a hurry.  Of course all of the self-directed steps take time and if I lack time, I simply travel to the nearest location that would stock that merchandise.

            In some ways globalization means Americanization, but in other ways it does not.  Globalization is a global relationship of culture, people, and economics; mostly from an economic standpoint.  When American companies reach out to other countries to extend economic relationships, America is Americanizing the relationship between the country’s economy and the economy of America.  So in a way, globalization is Americanization; however, Americanization does not include Americanizing the other country’s culture.  Only the people and leaders of the other country can change how their country operates.