All I needed to know about globalization and a lot more

EY! It's the first blog of the year! So I read Friedman's The World is Flat book over the break and I gotta admit it was pretty interesting, but some parts were too long and went into very great detail. It was pretty good overall, though, cause I learned a lot. Here's my reflection:

I cannot explain the newfound awareness that I experienced from reading this book by Thomas Friedman. I learned so much about economics in the world today including the topic of globalization and its effects on the world today as well as its effects on the future. I find it amazing that all of the new technology has allowed almost any country around the world to participate in the world economy. Throughout the book, Friedman continuously mentions the phrase, “The playing field is being leveled,” and I would choose these words as the best way to sum up the book. The phrase shows the whole idea of equal economic opportunity that today, more people than ever before can collaborate and compete with other people on so many different kinds of work from different places around the world.

From “Globalization 1.0” to “Globalization 3.0,” I find it amazing how much the world has developed and “flattened.” I was astonished to learn that outsourcing was so prevalent in the United States, as Friedman states so many examples, one including U.S. tax returns and call centers being done in India. I didn’t even realize that Japan outsourced to China, and that so many countries outsourced to other places. It is scary for me to learn that a growing number of people in China and India will take American jobs in the future because they can do the same jobs for much cheaper wages. Friedman also addresses the fierce competition that will occur in the upcoming years to determine the top economies of the world.

In the book, Mayor Xia elaborates on how U.S. is currently the designers and that the many people in developing countries are employed by the United States. However, he claims that the Chinese can only learn from these experiences, and one day, the Chinese will be the “architects.” I found Mayor Xia’s words very symbolic of the developing countries’ fierce attitudes to learn more about the economy and how to become successful. Friedman also touches on how technology including computers, e-mail, and fiber-optic networks has allowed individuals and groups to communicate and do business all over the world.

In addition, I was very interested reading about how the UPS as the main example of “insourcing.” I learned that when one orders a pair of Nike shoes from its website, Nike.com, the order is actually routed to UPS, and is picked, inspected, packed, and delivered from a warehouse managed by the UPS. Furthermore, contrary to my old beliefs, UPS doesn’t just pick up and deliver the laptop that you shipped to Toshiba to repair. UPS actually repairs the computer in its own workshop dedicated to computer repairs and sends it back to you. Thus, this whole idea of “insourcing” allows UPS to manage and improve company’s whole global supply chain, while at the same time helping small businesses to go global.

However, what struck me the most was the realization that I, as an American, have to work even harder and become the best I can be in order to compete against the upcoming Chinese, Indians, or Brazilians for jobs. This is due to globalization and the idea that future jobs will go to the best, smartest, most productive, and cheapest works, wherever he or she resides. But most importantly, in the future, the most valuable people will be the people who know how to use their right brains. In other words, the most creative people with innovative ideas will succeed the most because the people with menial or tedious jobs that do not require higher levels of education will most likely lose their jobs to other people around the world who can do that same job for cheaper wages. This is a bit daunting.