Module # 7 (WSU FALL 2014)

            Comparative Advantage is the key in determining why some countries are better than others at doing certain things.  Comparative Advantage is an economic theory about the potential gains from trade for individuals, firms, or nations that arise from differences in their factor endowments or technological progress.  From an economic standpoint, a company has a comparative advantage over another in producing good if they can produce cheaper.  The principle according to Wiki, holds that under free trade, an agent will produce more of and consume less of a good for which he has a comparative advantage. I think that education plays a huge role in comparative advantage also.  As some countries cannot produce as many educated people as other countries, and that education will go a long way as far as the economy goes.  In poor countries it is difficult to have any advantage over rich countries, as they really have nothing to offer.  Friedman said that Mexico has been replaced by china as The # 2 U.S. expoter, because mexico has been engulfed by the low cost manufacturing of China.  It is a cat and mouse game, or as a Mexican journalist told Friedman, “We were afraid of the wolf at first, then we wanted to dance with the wolf, now we want to be the wolf!”  It just goes to show you how a strong economy can dictate the world.

Self Directed Consumers, are people that use the Internet to their advantage to search, compare, and buy products.  I am definitely a Self Directed Consumer, as I refuse to buy anything until I get the best price.  One of my examples is Kayak.  I will search on Kayak for the best deals on Hotels, Airfare, and Rental cars, anytime I am going out of town.  Priceline is kind of the same way, as it operates in a similar fashion.  I use Ebay almost every day, and I use it as a template to gauge how much things are actually being sold for.   I will find something that I want to buy, then go to Ebay, do a search, and look at what the completed listings sold for.  This gives me a bottom line price, and an average as to what I should purchase something for, or sell it for.  I think Ebay is one of my best tools when I am selling things on KSL or, of course Ebay, as it gives me an amazing overview of almost every item in the world.  

I think in many respects Globalization is synonymous with Americanization.  If you look at fast food chains like McDonalds, expanding into other countries, and becoming a global fast food source all over the world, it is Americanization, taking on the face of Globalization.  America greatly benefits from Globalization.  I think it is a free for all in our flat world.  American companies, European companies, and many other global companies compete on the same level.  There are several companies in Europe that are in America, is this Europeanization?  I think that Globalization is for the taking, and can be had by anyone in the flat world, and it does not mean that we are modernizing Iraq by putting a Mcdonalds there…..It just means we are giving them more options…….Americanization is about presenting options to communities on a global scale.