The Government Must Regulate Globalization

Fueled by the expansion of multinational corporations and financial institutions, technological advances, and the increasing porousness of national borders, Globalization is a persistent, multifaceted phenomenon, which has and continues to have, significant impact on economical, political and cultural relations. The book, “The Lexus and The Olive Tree” by Thomas Friedman describes globalization as not just a fade or trend, but political and economical system that replaced the cold war. Friedman explains where we are and how we get here, through a series of skillful metaphors, highly relevant anecdotes, and cogent analysis. In this paper I provide a concise description of the principle arguments Friedman makes about globalization, and elaborate on three key points he made.

Friedman compares the views expressed during and after the cold war. One of the most important questions of the cold war was what side are you on? During the cold war, what mattered most to each country was which side it was on; this determined the source of the countries funds and support. Today, the question most focused on is how connected are you? Funds and support come from international markets and investors. How big is your missile? Is another question that countries were interested in. Military

mattered most to countries. Today what matter is the technological advancement and in particular Internet infrastructure.

In the cold war, countries had either friends or enemies. Today all countries see each other as competitors. Countries have to make themselves attractive for foreign

investments where everyone is a player. Another important point that Friedman points out is that during the cold war, you were either a supper power in the first world, ...

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...ut on the “Golden Straitjackets” in order to prosper in the globalization era. Why?

Because they have other issues that are much important, like struggling to make a living in a rather thriving global word. I believe that Richard J. Barnet and John Cavanagh’s views are more realistic and would make more sense. Friedman says that government should interfere less, leaving the world economic forces to move freely. Looking at the past, Asia in precise, due to the unregulated money markets, Asia’s stock market went down within days creating wide spread recession all over the world. Asia’s crisis is one of the warning signs, which could inexorably lead to a greater fall. High government interventions, and policies are needed to regulate the nation-state economy and prevent Multi National companies from exploiting the markets and increasing the gaps in a global economy.