Friday, May 18, 2007

The World is Flat: Book Critique


The World is Flat highlights how, practically overnight our world has become so interconnected with modern technology that it functions on an even playing field. Competitors around the world now battle for jobs in America, as we outsource and search for low paying employees. The book describes how world has become one in which unskilled jobs are leaving the US…and China and India

are having (and will continue to have) a greater impact on the near future. Friedman explains that the primary drivers flattening of our world occurred because of relatively new technologies such as the personal computers, the internet and fiber-optics. History combined with suggestions for the future of how to handle our new globalization make Friedman’s book a decent read.

Mr. Friedman simplifies his theory of the flattening of the world into ten main topics. Most of these topics are technology based such as the introduction of Netscape, workflow software, open/out and in-sourcing and supply chaining. He provides a history lesson, as he travels through the world explaining how much the world has changed practically overnight. This book seems to be mostly directed towards business minded individuals, yet it should be interesting to anyone who wants to preview the direction where our world is heading. While the world is becoming flatter, benefits are seen all over the world as some industries and communities are becoming better connected, more efficient and more prosperous. One major problem which Friedman fails to really identify is to provide solutions to the immense environmental problems which the flat world creates.

Friedman provides personal insight on the developing problems of the world and plays devils advocate attempting to ring out the questions that must be addressed. While the flatteners he described play an important role in understanding why our world is what it is today, I couldn’t help but notice how some of his examples were practically identical. Another weakness is Friedman’s failure to address the variety of readers who may be reading this book, and he also contradicts his original premise with the chapter ‘the Unflat World’. While he does provide alternative points of view to many of his arguments, I am not certain that individuals of different disciplines would agree so much with his book. Finally, Friedman’s book may be a disappointment if you have already read his previous book The Lexus and the Olive Tree, as he basically rehashes his main arguments in a longer edition (without as much emphasis on technology).

Friedman focuses much of his story-telling about how we will see China becoming a stronger force in our global economy. Fu bu guo san dai a Chinese proverb is quoted in the book referring to the fact that wealth doesn’t make it past three generations. China has been in a slump economically over the past century but it is far too apparent that they are returning. Take for instance the Olympics of 2008, joining the WTO…or the sheer number of Chinese people who have the desire to have a better life. This includes the rise in Chinese applicants to American Universities and the increased amount of Chinese training to become engineers and PhD’s. Friedman refers to China over 400 times in his novel…which should only emphasize the fact how important their country has become and will continue to be in globalized world.

As the book puts it “China is a threat, China is a customer, and China is an opportunity…You have to internalize China to succeed. You cannot ignore it." It is almost as if China has become the Wall-Mart of the world for businesses. If you ignore them [for many businesses], you simply won’t make it since costs are so ridiculously low there, you will hardly be able to survive operating elsewhere. Friedman brings this realization to life in his novel, as he suggests that rather than fighting off the flattening, we should steer it in the right direction. In an article recently published by Freidman, he steps up and addresses the environmental concern coinciding with globalization. He suggests that if we want to continue to enjoy the lifestyle and benefits of today, we do need to fuel our future in a cleaner, greener way. He suggests the next president should be more environmentally focused and suggests the motto: "Green is the new red, white and blue." If we really want to switch the world’s inconvenient truth we should start by directing China and set the example here in America.

Now that ‘being green’ is becoming more mainstream, perhaps Friedman should update his book to make a green edition? With globalization comes a heavy cost… In September of 2006 China's E.P.A reexamined their GDP and found out that health problems, environmental degradation and lost workdays from pollution had actually cost China $64 billion, or an estimated 10 percent of its total economic output for 2004. Luckily, China is finally having their eco-epiphany. While Freidman focused on how the flattened world has helped to connect everyone and make living a better place for the middle classes of the world, allowing anyone to publish and access information and business to flourish in remote corners of the globe, it has come with a cost.

Friedman’s novel should be beneficial to anyone who wants to gain a grasp of the world without flying all over it as the author has done to collect insight for his book. Reading this book may not provide the answers to solve the problems associated with globalization but it presents many of the fundamental ideas which business people can use to catch up while they were asleep. I would recommend this book to anyone who is not familiar with globalization or those who are living in a university bubble.


Wednesday, May 16, 2007

Do the Chinese Surf?

It depends on what kind of surfing you’re talking about. What was once an industry influenced primarily by Hawaii, California and Australia, there is a sleeping giant who has been awakened…Chinese surfboard manufacturing. In an industry worth over 8 billion dollars, it is no wonder why China is getting involved. With the disappearance of the Clark Foam [the former leader of ‘blanks’ for surfboards], there are more and more Chinese surf manufacturing plants popping up all over China.


Most of these Chinese boards are being stamped with expired logos from the past, such as The Realm or Canyon. Next time you’re at Costco look for one of these boards. All these boards are being hand-made, by Chinese shapers as oppose to machine produced. The ironic part…none of these Chinese shapers have ever surfed, nor have they ever visited the beach. While Chinese surfboard production does not represent a large part of the sales market yet, it surely will in the future as this new Asian growth is merely the tip of the spear. Further expansion into China is certainly going to occur, primarily because surf-shop owners of the U.S. are begging to dually have the long sought-after margins, and to quench the demand for low-end/beginner boards.

While most MBA’s probably are too busy with business matters to get a board and go surfing, this is an interesting phenomenon/opportunity that we’re seeing across most industries. Asia is clearly changing the way we do business. Similar to the Wal-Mart dilemma, this puts some skilled crafts-people out of jobs…Diversification of skills and products will help to alleviate this problem evolving the industry to the next level. Debates over whether tariffs should be put into place have been made to block the importation of Chinese boards, but would this be fair?

Who should determine whether Asia should be able to dump cheap products on US soil?

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