Homework 2

After listening to Tom Friedman’s lecture on how the world is becoming flat, which could be heard if you followed this link: http://www.youtube.com/watch?v=53vLQnuV9FY,I learned the most significant flatteners were outsourcing and insourcing.  I think insourcing and outsourcing are key factors in leveling the playing field.  One key thing about how the playing field is “flat” is how different countries can now communicate with each other.  Outsourcing allows companies to locate their stores in other countries, which allows them to operate much cheaper.  This strategy maximizes their profit because having companies in cheaper places is much more cost effective than having them here in the U.S.  Although I do not agree with outsourcing that much I do believe it was and still is a huge factor that “flattened” the world.  I don’t think insourcing is as bad as outsourcing because it will bring in jobs.  Insourcing is used also used to be more cost effective.  It cuts down on taxes and transportation.  Both of these factors combined definitely leveled the playing field in the world which caused it to become flat.  Since outsourcing and insourcing involve moving jobs this allows different countries to compete equally.  For example if a business in the United States moves overseas then what we had in the U.S. will also be overseas now.  This makes everything balanced.  What Tom Friedman means when he says “flattened world” is a balanced and equal world where everyone can compete equally.  I think the most important part here is technology.  Exposing the same technology across the world gives everyone the same opportunities.  This could be good or bad.  I think this could cause some countries to become very weak because even though most of the world is balanced there are still some countries below the poverty level.  I think these countries that have limited technology will only get weaker as others will grow and become more balanced.  I think the concept of the world flattening is interesting because I never thought of that. I think some changes need to be made for the whole world to be flat because right now I don’t think everyone has the same opportunities.