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but also their intangibles。 China does not just want to get rich。 It wants to get 
powerful。 China doesn't just want to learn how to make GM cars。 It wants to be GM 
and put GM out of business。 Anyone who doubts that should spend time with young 
Chinese。 
Said Luis Rubio�察�president of Mexico's Center of Research for Development�察 �The more 
self´confidence you have�察�the more it diminishes your mythologies and complexes。 One 
of the great things about Mexico in the early 1990s was that Mexicans saw that they 
could do it�察�they could make it。; A lot of that self´confidence�察�though�察�has been 
lost in Mexico in recent years�察�because the government stopped reforming。 ;A lack 
of self´confidence leads a country to keep chewing on the past�察─�added Rubio。 ;A lack 
of self´confidence ��in Mexico�А�means that everyone in the country thinks the U。S。 
is going to take Mexico to the cleaners。; That is why NAFTA was so important for 
Mexico's self´confidence。 ;What NAFTA accomplished was to get Mexicans to think 
forward and outward instead of inward and backward。 ��But�А�NAFTA was seen ��by its 
architects�А�as an end more than a beginning。 It was seen as the conclusion of a process 
of political and economic reforms。; Unfortunately�察�he added�察 �Mexico did not have 
a strategy for going forward。; 
Will Rogers said it a long time ago�此 �Even if you're on the right track�察�you'll get 


run over if you just sit there。; The flatter the world gets�察�the faster that will 
happen。 Mexico got itself on the right track with reform wholesale�察�but then�察�for 
a lot of tangible and intangible reasons�察�it just sat there and reform retail stalled。 
The more Mexico just sits there�察�the more it is going to get run over。 And it won't 
be alone。 

Companies and the Flat World 

�今今今今此�TEN 

How Companies Cope 
Out of clutter�察�find simplicity。 From discord�察�find harmony。 In the middle of 
difficulty�察�lies opportunity。 ´Albert Einstein 
As I conducted interviews for this book�察�I kept hearing the same phrase from different 
business executives。 It was strange�察�they all used it�察�as if they had all been talking 
to each other。 The phrase was�察 �Just in the last couple of years。 。 。; Time and again�察�
entrepreneurs and innovators from all different types of businesses�察�large and small�察�
told me that ;just in the last couple of years; they had been able to do things they 
had never dreamed possible before�察�or that they were being forced to do things they 
had never dreamed necessary before。 
I am convinced that these entrepreneurs and CEOs were responding to the triple 
convergence。 Each was figuring out a strategy for his or her company to thrive or 
at least survive in this new environment。 Just as individuals need a strategy for 
coping with the flattening of the world�察�so too do companies。 My economics tutor Paul 
Romer is fond of saying�察 �Everyone wants economic growth�察�but nobody wants change。; 
Unfortunately�察�you cannot have one without the other�察�especially when the playing 
field shifts as dramatically as it has since the year 2000。 If you want to grow and 
flourish in a flat world�察�you better learn how to change and align yourself with it。 

I am not a business writer and this is not a how´to´succeed´in´business book。 What 
I have learned in researching this book�察�though�察�is that the companies that have 
managed to flourish today are the ones that best understand the triple convergence 
and have developed their own strategies for coping with it´as opposed to trying to 
resist it。 
This chapter is an effort to highlight a few of their rules and strategies�此�
Rule #1�此�When the world goes flat´and you are feeling flattened´ reach for a shovel 
and dig inside yourself。 Don't try to build walls。 
I learned this valuable lesson from my bestfriends from Minnesota�察�Jill and Ken Greer。 
Going to India gave me an inkling that the world was flat�察�but only when I went back 
to my roots and spoke to my friends from Minnesota did I realize just how flat。 Some 
twenty´five years ago Jill and Ken ��whose brother Bill I profiled earlier�� started 
their own multimedia company�察�Greer & Associates�察�which specialized in developing 
commercials for TV and doing commercial photography for retail catalogs。 They have 
built up a nice business in Minneapolis�察�with more than forty employees�察�including 


graphic artists and Web designers�察�their own studio�察�and a small stable of local and 
national clients。 As a midsize firm�察�Greer always had to hustle for work�察�but over 
the years Ken always found a way to make a good living。 
In early April 2004�察�Ken and Jill came to Washington to spend a weekend for my wife's 
fiftieth birthday。 I could tell that Ken had a lot on his mind regarding his business。 
We took a long walk one morning in rural Virginia。 I told him about the book I was 
writing�察�and he told me about how his business was doing。 After a while�察�we realized 
that we were both talking about the same thing�此�The world had grown flat�察�and it had 
happened so fast�察�and had affected his business so profoundly�察�that he was still 
wrestling with how to adjust。 It was clear to him that he was facing competition and 
pricing pressure of a type and degree that he had never faced before。 
;Freelancers�察─�said Greer�察�speaking about these independent contractors as if they 
were a plague of locusts that suddenly had descended on his business�察�eating 
everything in sight。 ;We are now competing 

against freelancers� �We never really competed against freelancers before。 Our 
competition used to be firms of similar size and capability。 We used to do similar 
things in somewhat different ways�察�and each firm was able to find a niche and make 
a living。; Today the dynamic is totally different�察�he said。 ;Our competition is not 
only those firms we always used to compete against。 Now we have to deal with giant 
firms�察�who have the capability to handle small�察�medium�察�and large jobs�察�and also with 
the solo practitioners working out of theirhome offices�察�who ��by making use of today's 
technology and software�А�can theoretically do the same thing that a person sitting 
in our office can do。 What's the difference in output�察�from our clients' point of 
view�察�between the giant company who hires a kid designer and puts him in front of 
a computer�察�and our company that hires a kid designer and puts him in front of a 
computer�察�and thekid designer with a computer inhis own basement�拭 � 。 。 The technology 
and software are so empowering that it makes us all look the same。 In the last month 
we have lost three jobs to freelance solo practitioners who used to work for good 
companies and have experience and then just went out on their own。 Our clients all 
said the same thing to us�此�'Your firm was really qualified。 John was very qualified。 
John was cheaper。' We used to feel bad losing to another firm�察�but now we are losing 
to another person� ─�
How did this change happen so fast�拭�I asked。 
A big part of their business is photography´shooting both products and models for 
catalogs�察�Greer explained。 For twenty´five years�察�the way the business worked was 
that Greer & Associates would get an assignment。 The client would tell Greer exactly 
what sort of shot he was looking for and would ;trust; the Greer team to come up with 
the right image。 Like all commercial photographers�察�Greer would use a Polaroid camera 
to take a picture of the model or product he was shooting�察�to see if his creative 
instinct was right�察�and then shoot with real film。 Once the pictures were taken�察�Greer 
would send the film out to aphoto lab to be developed and color´separated。 If a picture 
needed to be touched up�察�it would be sent to another lab that specialized in 
retouching。;Twenty years ago�察�we decided we would not process the film we shot�察─�Greer 


explained。 ;We would leave that technical aspect to other professionals who had the 
exact technology�察�training�察�and expertise´and 
342 
a desire to make money that way。 We wanted to make money by taking the pictures。 It 
was a good plan then�察�and may be a good plan today�察�but it is no longer possible。; 
Why�拭�The world went flat�察�and every analog process went digital�察�virtual�察�mobile�察�
and personal。 In the last three years�察�digital cameras for professional photographers 
achieved a whole new technical level that made them equal to�察�if not superior to�察�
traditional film cameras。 
;So we experimented with several different cameras and chose the current 
state´of´the´art camera that was most like our ��analog�А�film cameras�察─�Greer said。 
;It's called a Canon Dl�察�and it's the same exact camera as our film camera�察�except 
there's a computer inside with a little TV´screen display on the back that shows us 
what picture we're taking。 But it uses all the same lenses�察�you set things the same 
way�察�shutter speed and aperture�察�it has the same ergonomics。 It was the first 
professional digital camera that worked exactly like a film camera。 This was a 
defining moment。 
;After we got this digital camera�察�it was incredibly liberating at first�察─�said Greer。 
;All of the thrill and excitement of photography were there´ except that the film 
was free。 Because it was digital�察�we didn't have to buy film and we didn't have to 
go to the lab to have it processed and wait to get it back。 If we were on location 
and shooting something�察�we could see if we got the shot right away。 There was instant 
gratification。 We referred to it as an 'electronic Polaroid。' We used to have an art 
director who would oversee everything to make sure that we were capturing the image 
we were trying to create�察�but we would never really know until we got it developed。 
Everyone had to go on faith�察�on trust。 Our clients paid us a professional fee because 
they felt they needed an expert who could not only click a button�察�but knew exactly 
how to shape and frame the image。 And they trusted us to do that。; 
For a year or so there was this new sense of empowerment�察�freedom�察�creativity�察�and 
control。 But then Ken and his team discovered that this new liberating technology 
could also be enslaving。 ;We discovered that not only did we now have the 
responsibility of shooting the picture and defining the desired artistic expre

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