Module 6

Megan Flinders

Module 6

 

Free trade is the notion that countries and economies as part of the global economy will thrive if each focuses on producing products that align with their core competencies.  It also enlists the concept that without barriers and tariffs, free trade would be able to flow without limit and end in a win-win for all parties involved.

The concept of free trade has encountered some opposition in recent years due to the explosion of offshoring and outsourcing.  Friedman himself mentions that even he, who still believes in the concept of free trade to the fullest, was a bit unnerved when he visited Bangalore and saw how many educated people were vying for the same jobs.  He couldn’t help but wonder how this increased competition in an ever increasingly flat world would affect himself, his children, and Americans as a whole.

I think the concept is important.  I also believe that more than just the back office or service level jobs will be continually outsourced if the pool of talent and skills sets are found similar in these regions at a fraction of the cost.  Americans will have to continue to focus on better education, continuous improvement, and innovation as to not lose the jobs and careers that allow for financial freedom in our capitalistic society.  Therefore, I too am not necessarily in favor of protectionism, or government enforced barriers, but in ever increasing personal value to stand out from the crowd. 

I also believe we have seen the anti-outsourcing movement to some degree with companies promoting the buy local, or buy American slogans.  I think this will continue to be a selling point and marketing strategy for some industries such as auto and manufacturing.  Some companies openly agree that there is a low cost alternative found abroad, but drive home the point that buying foreign may result in lesser quality, or hurting the national economy.  So while the government may not official come in enacting barriers or walls of some sort to globalization, companies themselves are doing so by new marketing techniques.

When discussing the idea of a “new middler” the illustration about homework resonated with me.  Friedman mentions that no longer must we do our homework, but we must do the right kind of homework.  This is due to the fact of the ever changing landscape where companies are changing whole workplace models.  So in order to take advantage and stay ahead of the competition, you have to study the right topics and focus on the right skill sets to gain or maintain a competitive advantage.  You have to be the “go to” employee and expert in your field.  Your value skyrockets due to your skill set, intellectual capital, and overall intangible value to your company which they cannot afford to outsource, automate, or digitize.

Friedman goes on to form three broad categories of “untouchables”.  These are people who are truly specialized, those who are localized or anchored, and those from the “old middle” jobs.  He then lists the skills and personality traits involved; namely great collaborators and orchestrators, great synthesizers, great explainers, great leveragers, great adapters, the green people, passionate personalizers, math lovers, and great localizers.  Each in their own way has a goal to decrease the change of losing their job to outsourcing or the negative effect of stagnated wages.

CQ + PQ > IQ is the formula Friedman uses to identify those who will stand out in the crowded masses of employment seekers.  CQ, the curiosity quotient, plus PQ, the passion quotient, are greater than IQ.  Simply put, those who have passion and curiosity are more likely to succeed in the flattened world because information is endless and now more available than ever.  If you have a passion to be creative and innovate, you can find the tools and know how to succeed.  Therefore, these skills are potentially more valuable than simply having a high IQ but no passion or curiosity.  As more and more of the global workforce becomes globalized, your passion to succeed and curiosity in ways to innovate and improve processes becomes ever more important.