The Lexus and the Olive tree, by Thomas Firedman. A summary on the importance and unimportance of Globalization in the world along with examples and quotes.

Essay by JMD0221University, Bachelor's November 2002

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"To begin, it is important to explain the meaning of The Lexus and the Olive Tree. The Lexus refers to technological advancement and growth, where the Olive Tree refers to traditional roots and stability. The basic premise of the book is the conflict between the two within cultures, economies, and individuals and how it if possible, at all, to bring the two camps together (Friedman 31-34). " Friedman's thesis is that globalization is the new international system that has replaced the Cold War. The

unstoppable technologies of the author's globalization are computerization and the Internet. With more than lightening speed, they are bringing down national borders and powering those individuals who can benefit themselves of democratizing new tools.

For economies everywhere, crony capitalism was an early target of globalization. Communism and fascism had their opportunities on world stages between 1917 and 1989; they simply didn't work. To prosper today, says the author," economies must make the private sector the primary engine of growth; maintain price stability; shrink the size of government bureaucracy; maintain a balanced or surplus budget; eliminate tariffs on imports and increase exports, remove restrictions on foreign investment; get rid of quotas and domestic monopolies; privatize government-owned industries; deregulate so as to promote as much domestic competition as feasible; eliminate government corruption, subsidies and kickbacks; open banking and telecommunications to competition and allow citizens to choose among competing pension options and foreign and domestic run pension and mutual funds."(Friedman)

In a chapter on "globalution," or revolution from beyond, Friedman argues that investors can now force governments to be more clear and democratic. They seek strength, openness and the ability to protect their property, but I believe one can't achieve these without building a good democracy and good labor. He also thinks the demand for E-government is rising and...