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〃Everything is by e…mail now;〃 he said。 〃I am dealing with a young kid at 'one of 
the biggest retailers in the nation'; and he says; 'Just e…mail me your bid。' I've 
never met him。 Half the time he doesn't get back to me。 I am not sure how to deal 
with him 。。。 In the old days; I used to stop by the office; give the buyers a few 
Vikings tickets。 We were friends。 。 。 Tommy; all anyone cares about today is price。〃 
Fortunately; my friend is a successful businessman and has a range of enterprises。 
But as I reflected later on what he was saying; I was drawn back to that scene in 
Death of a Salesman in which Willy Loman says that; unlike his colleague Charley; 
he intends to be 〃well liked。〃 He tells his sons that in business and in life; character; 
personality; and human connections are more important than smarts。 Says Willy; 〃The 
man who makes an appearance in the business world; the man who creates personal 
interest; is the man who gets ahead。 Be liked and you will never want。〃 
Not when the world goes flat。 It's hard to create a human bond with e…mail and streaming 
Internet。 The next day; I had dinner with my friend Ken Greer; who runs a media company 
that I discuss in greater detail later。 Ken had a similar lament: So many contracts 
were going these days to the advertising firms that were selling just numbers; not 
creative instinct。 Then Ken said something that really hit home with me: 〃It is like 
they have cut all the fat out of the business〃 and turned everything into a numbers 


game。 〃But fat is what gives meat its taste;〃 Ken added。 〃The leanest cuts of meat 
don't taste very good。 You want it marbled with at least a little fat。〃 
The flattening process relentlessly trims the fat out of business and life; but; as 
Ken noted; fat is what gives life taste and texture。 Fat is also what keeps us warm。 
Yes; the consumer in us wants Wal…Mart prices; with all the fat gone。 But the employee 
in us wants a little fat left on the bone; the way Costco does it; so that it can 
offer health care to almost all its employees; rather than just less than half of 
them; as Wal…Mart does。 But the shareholder in us wants Wal…Mart's profit margins; 
not Costco's。 Yet the citizen in us 
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wants Costco's benefits; rather than Wal…Mart's; because the difference ultimately 
may have to be paid for by society。 The consumer in me wants lower phone bills; but 
the human being in me also wants to speak to an operator when I call 411。 Yes; the 
reader in me loves to surf the Net and read the bloggers; but the citizen in me also 
wishes that some of those bloggers had an editor; a middleman; to tell them to check 
some of their facts one more time before they pressed the Send button and told the 
whole world that something was wrong or unfair。 
Given these conflicting emotions and pressures; there is potential here for American 
politics to get completely reshuffled…with workers and corporate interests 
realigning themselves into different parties。 Think about it: Social conservatives 
from the right wing of the Republican party; who do not like globalization or closer 
integration with the world because it brings too many foreigners and foreign cultural 
mores into America; might align themselves with unions from the left wing of the 
Democratic Party; who don't like globalization for the way it facilitates the 
outsourcing and offshoring of jobs。 They might be called the Wall Party and militate 
for more friction and fat everywhere。 Let's face it: Republican cultural 
conservatives have much more in common with the steelworkers of Youngstown; Ohio; 
the farmers of rural China; and the mullahs of central Saudi Arabia; who would also 
like more walls; than they do with investment bankers onWall Street orservice workers 
linked to the global economy in Palo Alto; who have been enriched by the flattening 
of the world。 
Meanwhile; the business wing of the Republican Party; which believes in free trade; 
deregulation; more integration; and lower taxes…everything that would flatten the 
world even more…may end up aligning itself with the social liberals of the Democratic 
Party; many of whom are East Coast or West Coast global service industry workers。 
They might also be joined by Hollywood and other entertainment workers。 All of them 
are huge beneficiaries of the flat world。 They might be called the Web Party; whose 
main platform would be to promote more global integration。 Many residents of Manhattan 
and Palo Alto have more interests in common with the people of Shanghai and Bangalore 
than they do 
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with the residents of Youngstown or Topeka。 In short; in a flat world; we are likely 
to see many social liberals; white…collar global service industry workers; and Wall 
Street types driven together; and many social conservatives; white…collar local 


service industry workers; and labor unions driven together。 
The Passion of the Christ audience will be in the same trench with the Teamsters and 
the AFL…CIO; while the Hollywood and Wall Street liberals and the You've Got Mail 
crowd will be in the same trench with the high…tech workers of Silicon Valley and 
the global service providers of Manhattan and San Francisco。 It will be Mel Gibson 
and Jimmy Hoffa Jr。 versus Bill Gates and Meg Ryan。 
More and more; politics in the flat world will consist of asking which values; 
frictions; and fats are worth preserving…which should; in Marx's language; be kept 
solid…and which must be left to melt away into the air。 Countries; companies; and 
individuals will be able to give intelligent answers to these questions only if they 
understand the real nature and texture of the global playing field and how different 
it isfrom the one that existed in the Cold War era and before。 And countries; companies; 
and individuals will be able to make sound political choices only if they fully 
appreciate the flattened playing field and understand all the new tools now available 
to them for collaborating and competing on it。 I hope this book will provide a nuanced 
framework for this hugely important political debate and the great sorting out that 
is just around the corner。 
To that end; the next three sections look at how the flattening of the world and the 
triple convergence will affect Americans; developing countries; and companies。 
Brace yourself: You are now about to enter the flat world。 

America and the Flat World 

::::: FIVE 

America and Free Trade 
Is Ricardo Still Right? 
As an American who has always believed in the merits of free trade; I had an important 
question to answer after my India trip: Should I still believe in free trade in a 
fiat world? Here was an issue that needed sorting out immediately…not only because 
it was becoming a hot issue in the presidential campaign of 2004 but also because 
my whole view of the flat world would depend on my view of free trade。 I know that 
free trade won't necessarily benefit every American; and that our society will have 
to help those who are harmed by it。 But for me the key question was: Will free trade 
benefit America as a whole when the world becomes so flat and so many more people 
can collaborate; and compete; with my kids? It seems that so many jobs are going to 
be up for grabs。 Wouldn't individual Americans be better off if our government erected 
some walls and banned some outsourcing and offshoring? 
I first wrestled with this issue while filming the Discovery Times documentary in 
Bangalore。 One day we went to the Infosys campus around five p。m。 …just when the 
Infosys call…center workers were flooding into the grounds for the overnight shift 
on foot; minibus; and motor scooter; while many of the more advanced engineers were 
leaving at the end of the day shift。 The crew and I were standing at the gate observing 
this river of educated young people flowing in and out; many in animated conversation。 


They all looked as if they had scored 1;600 on their SATs; and I felt a real mind…eye 
split overtaking me。 
My mind just kept telling me; 〃Ricardo is right; Ricardo is right; Ricardo is right。〃 
David Ricardo (1772…1823) was the English economist 
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who developed the

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