Globalization, The World is Flat

“…if you are an American, you better be good at the touchy-feely service stuff, because anything that can be digitized can be outsourced to either the smartest or the cheapest producer, or both. (15)”

This sentence from one of Friedman’s interviews defines many elements of market globalism. It is as if saying, “we see it (‘it’ being opportunity, value, money, etc.) and we’re coming to get it because we can do it cheaper.” Unfortunately, many Americans know this all to well as their jobs have been outsourced because they can be done cheaper and more efficiently overseas. Often we think of these jobs being higher-end/tech jobs (and now surgeries as seen in “Outsourcing Your Heart”), however, as noted in the Friedman text, drive-thru windows are being outsourced from communities to a central (American, for now) location. How much longer until these jobs are sent overseas? These entry level positions at local fast food restaurants are what keep some students out of trouble, and are a major source of funding for many families where parents either do not work, or are non-existent. This is a problem; however, market globalism does not address this…market globalism overlooks the person, as the decision comes down to “where can we keep our expenses to a minimum?”

The five claims to market globalism are true to an extent, and really depend on perspective. For example, claim four notes that “globalization benefits everyone.” Does it? Try to explain that to the mother of three who has a degree in accounting, has held a job with an American company for 20 years and then has it outsourced to India. Globalization does not benefit her. Globalization does not benefit the teenagers mentioned above in the McDonalds scenario. However, globalization does benefit companies that are able to reduce expenses and increase profit margins. Additionally, the phenomenon benefits countries to which the jobs are outsourced. So, in all, it comes down to one’s perspective on the situation.

Claim one states, “globalization is about the liberalization and global integration of markets.” Several times in the Friedman text he mentions that “the playing field is being leveled.” In essence, by leveling the playing field, we are bringing people/markets together. By having call-centers in other countries, parts being made cheaply in other locations, etc. goods are remaining affordable, and even becoming cheaper. Markets around the world are embracing the “you scratch my back, I’ll scratch yours” model in that, you provide us cheap labor, we’ll bring our business to you and keep prices down for consumers.

Claim 2 reads, “globalization is everywhere and irreversible.” Due to market globalism and the drive for higher profits, this is undoubtedly true. Companies are able to be more efficient and increase their bottom line, why would they ever want to reverse this? One of the most interesting quotes from the Friedman article (p. 45), summarized a UBS commercial that said, “we are in two locations, everywhere, and right next to you.” Globalization has made this true, with the flattening of the world and instant access to phone, internet, and media, nearly everything is everywhere and right next to you, simultaneously.