Sunday, April 14, 2013

"Lexus and the olive tree" by Thomas L. Friedman.

THE LEXUS AND THE OLIVE TREE

by

Thomas L. Friedman

Foreword to the Anchor Edition

        Globalization is non a skip or a fad but is an international outline which replaced the Cold War system and, like its predecessor has its cause rules and logic that now influence the politics, geopolitics, economics and environment of well-nigh every country in the world.

    I have guardedly examined the controversial sub-theses. One of them is my Golden Arches theory - that no both countries that both have McDonalds have ever fought a war against each other since they each got their McDonalds (As of April, 1999) and have found it quiesce valid.

OPENING SCENE:

The World Is Ten Years Old

    On celestial latitude 8, 1997 Thailands government announced it was closing 56 of its 59 pay houses. Thai businesses had launched a huge building program with U.S. dollars, borrowed from their finance houses who loaned, thinking themselves safely backed by their government and a strong baht. When the government failed its support due to massive, global guessing that the economy was stretched too far, value of the baht crashed. And there were not enough cheapened bahts to pay for the borrowed dollars. These investment houses were the first dominoes to excise in the first global financial crisis in the natural era of Globalization - the era that followed the Cold War.

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    Then inside just a few months, the Southeast Asian recession, originating in Thailand, began to affect commodity prices around the world. Asia had previously consumed huge amounts of unsanded materials. When their engines began to sputter, the prices of many essential commodities began to fall.

    These lowering prices seriously affected Russia, whose factories couldnt constitute much of value anyway; but, even so, there was slim market for their few items worthy of sale. Hence...

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