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 Chapter 4 Summary - The Great Sorting Out submitted by Tiffany Treni

The way that societies are organized will change and adjust as the world shifts towards the age of flatness. This new world will benefit commerce and business but it may threaten the very communities that distinguish us.

The world is shrinking. With each new development we are closing the distance. In this chapter the author discusses the idea that boundaries are disappearing and a reshaping of cultures and laws has begun. An important question that is asked is 'which do we keep and which do we let melt away into air so we can all collaborate more easily?' (Friedman, 2006, p. 238) Friedman goes on to say that people will react differently to this reshaping. Some people will desire the freedom and endless possibilities that this new 'flat' world brings and others will become anxious as they lose their roots.

India is used as an example of a place that has recently been able to use its talents. Today in India outsourcing has opened many doors to the people. This is a new development and it has affected business in other parts of the world. Friedman discusses the paradox of India vs. Indiana. In the state of Indiana jobs were being compromised due to the amount of outsourcing in India. The state of Indiana hired a company to upgrade the unemployment department. The company that they hired was an Indian consulting firm. 'Indiana was outsourcing the very department that would cushion the people of Indiana from the effects of outsourcing.' (Friedman, 2006, p. 240)

Companies have already started taking advantage of globalization. For example, IBM sold a portion of its company in 2004 to a Chinese computer company Lenovo. The two companies now work together withLenovo supplying the PC's and IBM providing the financing and services. Lenovo has both Chinese and American CEO's and is 'geographically dispersed, with people and physical assets located worldwide.' (Friedman, 2006, p. 245) It is difficult to say whether this is an American company or a Chinese company.

Today it is more difficult to distinguish the order of who is on the top and who is on the bottom. As a result, exploitation is not as easy to interpret and monitor. ' Collaboration is changing from a top to bottom pecking order to horizontal collaboration and because of this change we are in need of a new social contract to govern these relationships.' (Friedman, 2006, p. 242) Things are changing at such a rapid pace that people and places are being taken advantage of because we are in uncharted territory. American companies desire this flat world because they have profited from new advances such as outsourcing. The flatter the world the fewer the obstacles.

Intellectual property laws may need to be adjusted. Friedman asks the question, who owns internet property when you die, and introduces the reality that there is no one controlling the cyberrealm. (Friedman, 2006, p. 255) This cyberrealm is an interesting example of a relatively new type of property.

'A political debate consisting of which values are worth preserving, which should be kept solid, and which will be left to melt away is on the horizon.' (Friedman, 2006, p. 258)

Jon McBurney Chapter 4 Analysis 1. I do agree with many of Friedman’s points regarding the effects of globalization on the world, communities, individuals and companies. One point I think Friedman makes and illustrates very well is the idea that “one person’s economic liberation is another’s unemployment.” (p.240). Friedman uses Indian outsourcing and as example of this process and to highlight the issues that can arise. For instance, at first glance the Indian contract with Indiana appears to be taking jobs away from Indiana workers, which is why politicians reacted and forced the cancelation of the contract. In doing so they ignored the fact that the deal would greatly benefit the Indiana government and those benefits would be passed on to the Indiana taxpayer. This example highlights the many layers to there are to the issue and the many angles and perspectives it needs to examined from in order to understand who is truly benefiting from certain business decisions. Another great example of this that Friedman uses is Wal-Mart. Wal-Mart is an outstanding company from a consumer’s point of view. It does a great job at keeping costs down for low-income consumers, making money for its shareholders and itself, but at what cost? It “trims the fat” from its operating costs by not giving its workers health insurance or other important benefits. When these uninsured workers need health care the cost of this is passed on to the taxpayer. This begs the question then is Wal-Mart helping those with low-incomes or perpetuating a cycle which makes it impossible for low-income workers to ever advance and become part of the middle class. This example again illustrates the complex nature of the issues that arise when the world become’s “flat”. 2. The only part of the chapter that I disagreed with was Friedman’s proposition that as the closer the integration with the world becomes the more the lines between political parties will become blurred. I think if anything globalization has had a more polarizing effect in politics. It seems like many times party leaders and members abandon the ideas of progress and what is good for the nation as a whole and focus solely on attempting to defeat the other party. There are less ideological victories in politics these days and more party politics, and often people who identify as a certain party continue to do so even when that party ceases to act in their best interests. 3. One potential consequence if Friedman is right is, as stated above, political party lines will shift and change. Another is that the unemployment rate in the US will continue to rise as companies continue to outsource and seek out cheaper labor. Another possibility is that immigration will decrease dramatically. There is no need to immigrate to America for the “American dream” if you can stay in your own country, enjoy your own culture, family, environment, ect… all while making an excellent wage. 4. Globalization is going to really affect those kids who would normally graduate high school and immediately start working. The low income, blue collar jobs they would normally take will now be outsourced to other countries, leaving these people with very few options, and making college an absolute necessity. Students will also lose face to face contact, the ability to read people and understand people’s reactions to them, their socialization skills. if the only things they interface with are computes and technology.