...Rachel Lynn V. Atendido MBA – Regular Program THE LEXUS AND THE OLIVE TREE By Thomas L. Friedman ‘The Lexus and the Olive Tree’ is written by internationally acclaimed author Thomas L. Friedman that provides a framework for understanding globalization as an international system. He explains the influence globalization is making on politics, economics, society and religion. Friedman stages the conflict between the Lexus (globalization) and the Olive Tree (the primeval forces of culture, geography, tradition and community). The book explains how to look at globalization today and how it works. Friedman discusses that globalization today is similar to the previous era of globalization and what set today’s globalization apart from the past is the grade and intensity with which the world is being held together into a single globalized marketplace. What is new today is also the quantity of individuals and countries who can take advantage of the globalized economy and information networks. Furthermore, it discusses how nation-states, communities, individuals and the environment interrelate with globalization. Friedman indicates that the system allows farther, faster, deeper and cheaper reach around the world. For example, in the 1990s most people have not even heard about internet and only few people had an email address then but today the Internet, cell phones and emails have become a necessity for people. Whereas globalization has a good effect, Friedman also discussed the undesirable...
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...The objective of Thomas Friedman’s book The Lexus and the Olive Tree: Understanding Globalization is to understand globalization as a complex and interconnected international system where he embellishes the system with symbols and bold metaphors. In the opening scene of the text, he mentions the crash of Thai currency, the baht in 1997 which triggered a domino effect on the Southeast Asian market. The result of which was Southeast Asian recession. Recession in Southeast Asia caused rise in prices of commodities all over the world. Friedman’s description of the events in the opening scene is an example of this complex interconnected system called globalization. According to Friedman, globalization is a process that much of the world is going through now and is the sum total economic interests of everybody in the world. This complex system has broad dynamics that deal with finances, technology and intercommunication. The beginning of this era of globalization started with the fall of Berlin wall in 1989 indicating the end of cold war era. The Cold War system was a stationary system whereas globalization is a dynamic process. The world today is very fast paced and the velocity keeps on increasing rapidly. Unlike the Cold War system globalization has integrated the markets breaking out of cultural barriers and national borders. “I define globalization this way: it is the inexorable integration of markets, nation-states and technologies to a degree never witnessed before in a way...
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...The Lexus and the Olive Tree Understanding Globalization Financially, Citizens, and countries are no longer islands into themselves. With the advent of globalization, the computer, and in particular the internet, people can easily invest not only in foreign corporations but also in the bonds and other papers of the foreign countries themselves. As a result, what happens in the economies of foreign countries can rapidly affect the investors of countries halfway across the world. This has been the case for only ten years, and the reason why Friedman says its whole new ball game and that --- “the world is only ten years old”. The cold war no longer is a dominating system for understanding foreign affairs. We are now in a new international system Friedman calls “globalization”. The Cold war was characterized by division; now it’s characterized by integration, integration made possible by rapid-speed airplanes, cheap international telephone charges, satellite communication and more than ever, the computer and the internet. We now have an entirely new set of financial understandings to achieve. What used to be true is no longer necessarily true. As a result of information Arbitrage, we can no longer think like specialists, because what’s going on in this new world requires us to think rapidly and multi-dimensionally. We can no longer, for example, think only like financiers; we must understand policies, because what happens politically in one country can affect finances in...
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...happening and how the international system is transforming the world affairs. It also shows you all the things that he said in his book that they would come true and some of those things actually did come true. This books helps you understand about how globalization is working and why it is happening. It also shows and tells you how the world reacts to it and what the bad and good thing about globalization. In the first part of the book of the books it explains what the title ‘Lexus’ and ‘’olive tree’’ means. The Lexus stands for half the world emerging from the Cold War and people intent on building a better Lexus, modernizing economies in order to thrive globalization. The olive tree stands for the other half who are still caught up in the fight over who owns which "olive tree." The Lexus stands for the emerging of new things like 300 new Lexus being built everyday and people are moving on from the Cold War. The Olive tree represents our roots, anchors us, and identifies us. The Olive Tree also represents people fighting over who own what. That was the main thing in the beginning because it tells you what the title is all about. After that it goes into more detail about other things about globalization. It asks what a golden straightjacket it the golden straightjacket is an economic group where you need to have some standards to be apart from. To be able to join the group you have to adopt or make a progress towards the golden rules. Some of the rules are making...
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...Introduction During the past few decades, the role of leadership in managers has become a great argument for most scholars (Bass, 1985) in regards to the competitively intensifying economy, reduction of barriers in financial markets and the perpetual innovations (Castells, 1998: cited in Holmberg, 2009). The evolution of globalized economy today has driven many organizations towards a world class innovation. Kock and Slabbert (2003: cited in Ghasabeh et al., 2015) argued that the role of leadership in every managers is very crucial in order to achieve business objectives in this modern era. Thus, the competitiveness and complexities in business environment has put more pressure on demand of effective leader to develop those objectives. Manager needs to be equipped with necessary skills to cope with the competitive pressure in a dynamic environment. Arguably, after almost a century of research, what makes a manager be an effective leader is still remain as a huge controversy in schools of leadership. The term managerial leadership is a concept that sounds difficult to comprehend as it is the integration of managerial role and leadership where the behaviors are different but interrelated (Soucie, 1994; Collins 2002). Soucie (1989) highlighted that they are different based of their actions in interference, behavior or trait to influence the followers. Managerial leadership is combination of position power with other competencies which inclusive of skills, knowledge, critical...
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...that explicitly deny any notion of individual human rights. Thomas Friedman once famously noted that "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's." (Freidman, p. 30). There is nothing magical about McDonald's. It simply mean that when there is a certain level of free markets and disposable incomes, that conflicts between nations can be handled through diplomacy, not force of arms. A foreign policy that encourages the promulgation of these American ideals can work to limit the number of armed conflicts in the world, and the choice of diplomacy over war is certainly in the interest of not only the United States, but the world. WORKS CITED Friedman, Thomas. The Lexus and The Olive Tree. New York: Farrar, Straus and Giroux,...
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...Globalization "Globalization" is a term that came into mainstream use in the 1980's to portray the expanded development of individuals, information and thoughts, and merchandise and cash crosswise over national outskirts that has prompted expanded interconnectedness among the world's populaces, monetarily, politically, socially and socially. Globalization as a concept refers both to the compression of the world and intensification of consciousness of the world as a whole both concrete global interdependence and consciousness of the global whole in the twentieth century (Robertson, 1992: 8). Despite the fact that globalization is regularly considered in monetary terms (i.e., "the worldwide commercial center"), this methodology has numerous social and political ramifications too. A lot of people in nearby groups partner globalization with modernization (i.e., the change of "conventional" social orders into "Western" industrialized ones). At the worldwide level, globalization is considered regarding the difficulties it postures to the part of governments in universal issues and the worldwide economy. There are warmed verbal confrontations about globalization and its sure and negative impacts. "Friedman realized early that to write intelligently about world economics he needed to make himself an expert in six tightly integrated domains that are usually reported separately: financial markets, politics, culture, national security, technology, and the environment" (Brand, 2002, Introduction...
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...Introduction Globalisation is expressed as a connection between communities globally. In an economic sense, it is the growth in international trades, investments and capital flows. It bridges the gap between countries through technologies and communications. As Friedman (2000, p9) states “it is the inexorable integration of markets, nation-states and technologies to a degree never witness before – in a way that enables individuals and corporations to reach around the world further, faster and cheaper than ever before…”. The key aspect to globalisation is to increase growth. Though globalisation does bring benefits and opportunities to developing countries – many argue that globalisation will widen the income gap between the rich and poor. For Globalisation Developing countries will see a growth in their economy. Carbaugh (2009, p21) mentions that open borders permit new ideas and technology to flow freely around the world. Multi-national corporations(MNC) that tap into these countries experience free trade between nations and inexpensive production sites, as such, jobs are created. Wages given tend to be better than other local similar opportunities or position – jobs that require higher skill set is a catalyst for increased education level. With high trades and investments, it stabilizes and stimulates the local economy and raises the standards of living. Yeates (2002, p10) points out that globalisation creates consumer choice and prosperity for all, but especially...
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...costs, boost efficiency and increase profits. The less developed countries had some negative effects to deal with. For example, China, while experiencing economic growth, has also begun to struggle with unemployment. Studies show that increased trade between the North and South has lead to a decrease in the income equality between semiskilled and skilled workers in the South. On the other hand, the inequality grew among such workers in the North. The manufactured goods from the South raise demand and wages for workers with only limited skills and education. This is different for the North. In the North, highly skilled workers get paid top wages by technology and service industries, while semi skilled workers are not as needed (In Lexus and the Olive Tree.) Globalization has lead to the consumption of food from foreign countries instead of locally grown...
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...The earth feels smaller whenever a new telecommunication device is introduced to the market, or anytime footage of a unique event or an action in the world is shared in cyberspace for everyone to see; these are small affects of globalization in life. Globalization integrates economy and cultures of different regions of the world through trading, telecommunication, technology, human migration, and capital flows. Incentive of the integration may be economic, political, cultural, technological or humanitarian. George Ritzer’s invented term, McDonaldization, is a subset of the globalization phenomenon. Ritzer compares globalization with characteristic of a fast-food restaurant. The characteristic includes measuring efficiency by pace of serving customers, which means the fastest worker is the efficient one; getting a large amount of food in a very low price; receiving constant and predictable service from distinctively similar workers. Ritzer believes the fast-food characteristic is dominating different sectors of American society and the entire world. In fact, this is the irresistible effect of globalization. The phenomenon, which Ritzer calls McDonaldization, is neither new nor destructive; it is just how firms coexist in free comparative market. Accepting globalization instead of resisting it, would help to promote global prosperity. Educating different aspects and strength points of globalization and its impacts on economy, culture and politic would ease the acceptance. Globalization...
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...Starbucks case study by applying the Eclectic Theory and Friedman’s Nine Questions Introduction Starbucks is the most recognisable brand and well-known coffee shop in the world. Moreover, it started as a small coffee shop in Seattle and grew into the most successful global coffee company. This report describes international expansion and reasons of Starbucks’ success by applying the Eclectic Theory and Friedman’s Nine Questions. The Eclectic Theory The Eclectic Theory was created by John Dunning during the 1980s. The theory explains why companies choose to become multinationals and what advantages support to invest overseas. This model is called “OLI Framework,” and it determines Foreign Direct Investment (FDI). According to the theory, a company is ready to invest overseas when it has ownership, location and internalisation advantages compared with companies who operate on foreign markets. Ownership advantages are occurred by possessing tangible and intangible assets which are connected with many factors where knowledge, trademark, production techniques are significant. Starbucks’ ownership advantages include the following: - globally recognized trademark - unique flavours and aromas, and roasted techniques - reputation focusing on high quality customer service - flexible and clear corporate vision and goals that are developed by Schultz - large learning curve as a result of past successes and failures - highly-motivated training staff members that are...
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...Since the 1980’s the world economy experienced many changes. Some examples are trade, technological advances, communications and information, and the global financial crisis. The U.S endured a deep recession throughout 1982. Business bankruptcies rose 50 percent, Farmers were especially hard hit, as agricultural exports declined, crop prices fell, and interest rates rose. By 1983, inflation had eased, the economy had rebounded, and the United States began a sustained period of economic growth. The annual inflation rate remained under 5 percent throughout most of the 1980s and into the 1990s. While the U.S was going through they’re recession, in the 1980’s to the 1990’s Japan dominated trade. Exporting goods and services to the rest of the world showed global completion and the affect it had of management of International companies. Following Japan’s footsteps came the Asian Tigers which consist of Hong Kong, Singapore, Twain and South Korea. The rest of the world followed and saw the advantage of globalization In 1989, barriers across the world broke down with the fall of the Berlin Wall at the end of the Cold War (Friedman 45). That made international investment and information easier to pass borders through borders. The three main elements that initiated this modern globalization is the advance of technology, finance and communication (Friedman 44). The most significant element out of all is the rise of modern technology. Technology gave led to telecommunication and computerization...
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...Stefanie Cruz ANTH 2395 30 April 2013 Globalization and the Brazilian Amazon Containing nearly half of South America’s area and population within its realm, Brazil is considered the continent’s giant. Even more astonishing, it is also the fifth largest country in the same categories worldwide. A country with such colossal parameters no doubt holds within its jungles a vast amount of resources desirable to most of the world, making it a superpower high up in the free trade market empire. However, while it is true that the Brazilian economy is booming, what negative implications does this dependency on the global demand for its commodities have on the very source of these precious resources? The Amazon rainforest, making up fifty-four percent of the world’s rainforests and providing 20 percent of the world’s oxygen (thus acquiring the name “Lungs of the Planet”), is taking the hardest hit. Because some of the highest-grossing commodities are drawn from the soil or consume land masses as time progresses, as the demand for these products gets higher, so does the inevitable environmental degradation of the Brazilian Amazon. Due to an increase in the global demand for Brazilian exports such as soybean and cattle production, there is a rapid expansion into non-protected forests causing irreversible deforestation in the Amazon and displacement of its local tribes. Everyday, the world’s population is faced with new challenges when it comes to the supply and demand for agriculture-based...
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...savior and a key to development and emergence of countries and nations. And now we are going to speak for this phenomenon. As we know international trade keeps prices low and quality high. Anytime a country in the past has tried to be self sufficient and not take part in global markets, they find that their business became inefficient due to lack of competition, prices rise and their products lack innovation. Thus they end up with hyperinflation. Moreover, Globalization can help bring world peace. As every country on the planet becomes more interconnected with every other country there is a serious incentive for all of the involved to keep the peace. Thomas Friedman, in his book “ the lexus and the olive tree” goes so far as to discuss the “golden Arches” theory of world peace. Economies that are developing globally have more economic growth than established economies demonstrating globalization. Benefits for developing regions are for example if you give a machine to USA to help raise productivity then it’s GDP would rise but only by a little cause their GDP has already reached a point and they don’t lack capital but if you give it to say South Korea then it would raise their productivity and production which would result in a drastic rise in GDP because they lack such capital and face low productivity. Therefore developing countries with the gaining of capital through globalization would establish faster. ...
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...Summary of Thomas Friedman’s The World Is Flat In The World Is Flat, Thomas L. Friedman discusses events and technologies that are “flattening” the world and increasing globalization. Friedman feels the world is highly interconnected without regard to hierarchy, distance, organizational size, individual status, culture, or language. He describes ten "flatteners" that are reshaping the world. Flattener 1 – Fall of the Berlin Wall The end of the Cold War broke down barriers between people. To catch your attention he identifies this flattener with 9/11. November 9, 1989 is when the Berlin Wall fell. He contrasts it with 9/11 which is journalistically neat but not terribly pertinent. But Friedman doesn't stop with a political-historical event. About the same time (the 1980s), Apple and Microsoft were making personal computers available to the world. Not only did the Berlin wall fall but Microsoft Windows opened [cute]. Part of flattener #1 is the personal computer, the ability of individuals to put their thoughts in digital form. Flattener 2 – The Internet On August 9, 1995 Netscape went public with first internet browser available to the public at large. Now people could access information from all over the world. Flattener 3 - Workflow software Many software developments, standards, and protocols enable computers and other digital devices to interact over the internet so that work and other projects can be done by people any where in the world. Friedman...
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