Module 7

Megan Flinders

Module 7

 

Some countries are better at doing certain things, or in economic terms, have a comparative advantage in large part due to their culture.  Friedman references The Wealth and Poverty of Nations in which author David Landes mentions that the values of the country or region (hard work, thrift, honesty, patience and tenacity) are a bigger factor than the climate, natural resources and geography.  While the latter factors also play a part in competitive advantage, countries gain the comparative advantage from these intangible factors.

Friedman goes on to explain how Ireland has these values instilled in the country DNA, and has risen from the scoffing of European countries, to become the second most wealthy nation in the European Union.  The hard work and resiliency of the nation has allowed it to embrace globalization and become an attractive player in the global economy.  Friedman uses the term “glocalize” to describe nations who absorb foreign ideas and best practices and meld them with the country’s own norms and traditions to create an advantage in the flat world.  This is in contrast to many Muslim countries who are stuck on tradition and unwilling to glocalize with other nations.  Not only are these countries closed off to the idea of melding ideas, some actually shun the practice and feel a need to “purge” or eliminate certain nations to do.  In a way, this leads to a more closed mindset which can decrease the potential comparative advantage.  Ultimately when tolerance is the foundation, nations can share best practices and good ideas for the greater good of all.

One additional comparison Friedman uses to illustrate why some countries produce comparative advantage is between Mexico and China.  Simply stated, it is the intangibles China possess which allows it to thrive while Mexico is lost shuffling for answers.  China has found the ability to focus its energies, perform necessary reform, and promote based on a meritocracy.

Self-directed consumers are those that drive companies to offer products and services customized to their needs.  They feel that if Company X is not offering such a service they desire, they will find another company that does.  An example referenced is in the financial industry where consumers want one stop shopping for these services.  It can also be seen in many companies and innovative products which continue to develop after taking surveys, launching pilot products and programs, and making adjustments based on consumer feedback.

I believe I am a self-directed consumer in a way because I have a good idea of the service and products I want.  However, I also enjoy companies, such as Apple, who bring innovative products to me.  I think there is a delicate balance between being reactive and waiting for customers to tell you what they what, and being innovate and proactive and telling consumers what they want while giving the reasons they will want it.  Ultimately people don’t know they need or want or can’t live without (e.g. smartphones now versus phones 15 years ago) until somebody creates the products and shows them.

When speaking of globalization, it is not meant to reference Americanization.  Friedman discusses how this might have been the general feel or consensus early on the flattening process simply because America was the first mover in the market.  Most American factories, products, brands and so forth paved the way in globalization.  However, we have discussed through the text this concept of individual empowerment through electronic means and platforms and the flattening world.  Now people everyone can upload content, ideas, and innovation from across the globe.  This means more and different perspectives, and cultural impact instead of simply an Americanization of the globe.  Americanization is still a powerful force, but globalization offers a platform for individuals from all nations to share cultural norms and practices as never before.