Chapter 16 Chapter 5 America and Free Trade (2)

However, don't be bound by these conventional ideas.Search engine optimizer is just one of the new careers popping up in the flat world.Here's how the career arose: Suppose there were two large bag companies in the world—Tom Bags and Samsonite.When someone searches for "bags" on Google, if the name of Tom Bags appears before Samsonite on the first page of search results, it will bring huge profits to Tom Bags.More and more people will click on Tom Bags' Web site, and since the people who click on the company's website through the Web site tend to be people who want to buy bags, Tom Bags will take the lion's share of the market.Search Engine Optimizers (in trade they are simply referred to as SEOs)

Your job is to constantly study the algorithms used by the major search engines, and then try to design a marketing and network strategy that will make your company's website as high as possible in the search results.Search engine optimizers are so obsessed with algorithms that they've been dubbed "algorithmic freaks."Their work combined mathematics and market management—an entirely new field of work created by the flat world.Remember, you asked your math major friends, "What are you going to do with math in the future?" Now, you get it. Search engine optimization work has become such a huge industry that Google started throwing an annual dance at its headquarters for all the search engine optimizers trying to crack its algorithm. On August 20, 2005, the Associated Press described the dance party held by Google in this way: "The flowing beer, cheerful music, karaoke and computer games pushed the headquarters party to a climax, but the real The real drama was played out in a conference room at Google's corporate headquarters, where wily dot-com executives trying to manipulate Google's search results to gain a competitive advantage tried to make the most of a rare opportunity to befriend Google's top engineers. , the two sides battle wits and courage. Although the engineers who write Google's algorithm seem to agree that they are as helpful as possible, in fact they will not tell others the 'exclusive secret recipe'-Google's strictly guarded algorithmic formula for ranking websites. Yes. Network engineers, like Sally, are pissed off by attempts at nesting.

Shari Thurow In other words, if you want your website to rank high in the search results, the best way is to provide valuable information and high-quality products. “There is nothing to suggest that a flat world renders Ricardo’s theory of comparative advantage obsolete. The only thing that is new is how developed and developing countries define their comparative advantage in a flat world, and how firms position themselves in a timely manner. Choose your footing in old and new services and industries. It is here that new challenges come. In a flat world, a country loses its comparative advantage in an area more quickly than in a traditional spherical world.For example, China and India can now compete with Western developed countries in many fields that were monopolized by developed countries in the past.If these western developed countries want to maintain their living standards, they need to adjust their strategies and move to more emerging fields at a faster speed.At the same time, as India and China develop, their past comparative advantage in low-end markets—general manufacturing and textiles—will shift to countries like Vietnam and Madagascar.No country can escape this law of economic development.The good news for America, as I've been trying to explain, is that flat world new industries will emerge faster and faster, and new jobs will keep popping up.Well-educated Americans and Europeans are qualified for these jobs, such as search engine optimizers.Often, as a large number of existing jobs are gradually commercialized and more easily traded, these jobs flow from developed to developing countries in waves and become items of comparative advantage for these countries.

Due to the influence of 10 factors that lead to a flat world, more and more jobs are subdivided, more complex jobs are done by developed countries, and relatively simple jobs are done by developing countries-each playing their own comparisons Advantage.You'll start to see more and more innovation coming from China and India, and also, some production, design and marketing outsourced to Western countries because Western countries have a corresponding comparative advantage.All of this seems to be distributed in an instant, but as the economic pie continues to grow and become more complex, each country will find its own expertise-provided, of course, that the country continues to improve the education level of its citizens, improve the The skill level of its workforce.

Remember: Indians and Chinese are not pushing us off a cliff, they are pushing us up - and that's a good thing for us.They want a high standard of living, not sweatshops; they want high-quality products, not junk; they want our scooters for our cars; they want our pens or pencils for our computers.The more they do this, the higher their demand for living standards, the more room we have to open up new areas at the top of the industry chain.Because once Indians and Chinese use these products, they will buy more, which leads to the formation of diversified product markets and promotes the emergence of various specialization fields.After Indian technology companies received orders from the United States, they began to use some newly developed technologies and resources to design new products.

The use of these products has lifted the poor off the poverty line and gradually joined the ranks of the middle class.Once they become middle class, they may become consumers of American products.Both China and India are rapidly shifting from focusing on low-cost production and imitation to focusing on low-cost independent innovation.They need to find innovations to solve their own problems.Once they succeed - like India's $10-a-year health insurance plan for every poor person, cheap laptops, cheap mobile phones, and even low-cost flights (from Bangalore to Delhi) sold over the Internet at gas station kiosks $75 for a one-way flight of up to three hours)—these efforts will help people in these countries jump on the bandwagon of globalization. The November 11, 2004 issue of "Business Week" cites the example of a Tata car factory in Pune, south of Mumbai.

"There, a group of young designers, technicians and salespeople look at drawings and examine samples -- the steel and composite plastics needed to make a new car. Early next year, they will design the prototype for a compact car. Sample - Tata Group's most ambitious plan yet. The sedan is priced at $2,200 and the company hopes it will beat the $5,000 Maruti coupe from Japan's Suzuki to become India's most expensive car. Cheap car. They also want to export the car and use it as an example for other developing countries. 'This is the national car that Indians need now', Ratan, president of the $12.5 billion Tata Group. Tata Ratan Tata said that this car is expected to be put on the market in 2008. Investors, managers and workers in developing countries can feel the impact of India's software manufacturing industry and communication switching center. But this is only for India. Example of services in developed countries. Now Indian entrepreneurs and companies like Tata Group want to turn to provide services to their nationals...Finance, Education, Healthcare and Automobiles.In many fields, India needs more and more good quality and cheap products , this year's strong economic growth will further enhance this demand.

The phrase 'Make in India' has become the badge of 'low-cost innovation' in the new global economy". Ragland, chief economist at the International Monetary Fund.Rajan is a board member of HeyMath.com, Inc. This is an innovative Indian education company that uses Indian teachers to provide homework help to students in Singapore and elsewhere.At the same time, the company also hired experts from India, the United Kingdom and China to help the company design various teaching methods to enable students in grades six to twelve to quickly accept the content of mathematics and natural science courses.

In partnership with public schools in Singapore — and now even expanding to schools in the U.S. — HeyMath provides teachers with lesson plans, instructional handouts made with PowerPoint software, online homework zip packs and a variety of other things to teach math and science lessons method of learning.All of this saves teachers time that they can dedicate to preparing lessons or engaging with students face-to-face. Headquartered in Chennai, India, HeyMath makes money from schools in Singapore or elsewhere.Cambridge University in the United Kingdom also uses this method for teaching, providing comprehensive quality control, issuing certificates to those who meet the requirements, and then charging fees.

"Everyone takes what they want, and they are all winners," Rajan said. "The company is run by two Indians who used to work for Citibank and Credit Suisse First Boston in London and then returned to the India and started this company...Cambridge University earns money from companies that specialize in a certain field, Indian students use their spare time to earn pocket money, and Singaporean students can get better academic performance.” At the same time, The teaching software used by Indian students is provided by Microsoft, and the chips in the computers are made by Intel Corporation of the United States. After getting paid, Indian students are very likely to buy personal computers from Hewlett-Packard.

All of this is really happening, you can't see it."The economic pie is growing, but no one is paying attention," Rajan said. HeyMath's entry into the world economy has not caused anyone in any region to lose a job. On the contrary, many people in different regions have new jobs. — these jobs did not exist 5 years ago. An article in the McKinsey Quarterly titled "Cheap Labor Is Not the Only One: A Guide to Economic Development" (January 2005) puts this situation well: "In northern Italy most garment production is Shifts to lower-cost regions, but employment remains stable as apparel companies put more resources into designing garments and deploying global production networks, creating new jobs.” It's easy to foment hatred of the free market economy and the practice of companies moving jobs overseas, because an increase in layoffs by a large company is more likely to be noticed than an increase of five or 10 jobs in a small and medium-sized enterprise, It's often on the headlines of newspapers.Occasionally, newspapers have delved deeper into the issue.A newspaper in my hometown, the Minneapolis Star-Tribune, did just that, taking a close look at how Minnesota's economy is affected by a flat world. On September 5, 2004, the newspaper published an article titled "Offshore Outsourcing is Good for Us", which was published in Wuxi, China: "The outdoor air is humid and dusty, and the temperature is as high as in the tropics. .In the factory building, the environment is clean, the air is moderately dry and humid, cool and pleasant, hundreds of workers are dressed from head to toe like the work clothes worn by NASA staff, working for Donaldson Corporation headquartered in Bloomington, And these people were former farmers. Donaldson's 2,500 employees in China more than double its 1,100 employees in Bloomington, Minnesota. If certain products were produced in the United States, Donaldson would not be able to make any profits because the production costs were too high. By setting up factories in China, Donaldson regained the ability to manufacture the product, which has re-entered the U.S. market due to falling costs.In addition, setting up factories in China has also increased employment opportunities for Minnesota. From 1990 to the present, there are about 400 such positions.Donaldson hired well-paid engineers, chemists and designers in Minnesota to design new filters and produce them in factories in China, as well as things like MP3 players and digital cameras.Manufacturing in China has made it possible to lower the price of computer hard drives and lead to higher demand for the product. 'If we don't follow the trend like this, we will be knocked out of the market. ' David, Donaldson's general manager for hard drives and microelectronics.Tim said. In 2003, Global Watch estimated that offshoring added 1,854 jobs to Minnesota.By 2008, the company expects that number to grow to 6,700. "Economists often compare the addition of China and India to the world economy to when railroads connected New Mexico to the more populous state of California," said Devi Walker Paul, president of Wipro Technologies. The first thing you feel when a railroad reaches a town is its enormous capacity, and all the New Mexicans will say, which Californians are going to wipe out all the factories along our railroads. This is true in some areas, with companies located in some Mexican states along the railroad withdrawing from the market.But on the other hand, capital is redistributed.In the end, everyone along the railroad benefits. It's a good thing to have this worry because it motivates people to change, to discover new things, and to do better. " This fear arose when the railroads connected New York State to New Mexico and California, when we connected Western Europe to the American Midwest and Appears when Japan is connected.The way to succeed is not to cut off the rail lines that connect you, but to develop your own capabilities and invest in opportunities that will allow you and society to benefit from a growing economic pie.