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The Lexus and the Olive Tree

The Lexus and the Olive Tree
The Lexus And The Olive Tree first edition cover.jpg
Author Thomas L. Friedman
Country United States
Language English
Subject International economic relations
Free trade
Capitalism–Social aspects
Technological innovations–Economic aspects
Technological innovations–Social aspects
Intercultural communication
Globalization
United States–Foreign economic relations
Publisher Farrar, Straus and Giroux
Publication date
1999
Media type Hardcover
Pages 394
ISBN
OCLC 40609510
337 21
LC Class HF1359 .F74 1999
Preceded by From Beirut to Jerusalem
Followed by Longitudes and Attitudes

The Lexus and the Olive Tree is a 1999 book by Thomas L. Friedman that posits that the world is currently undergoing two struggles: the drive for prosperity and development, symbolized by the Lexus, and the desire to retain identity and traditions, symbolized by the olive tree. He says he came to this realization while eating a sushi box lunch on a Japanese bullet train after visiting a Lexus factory and reading an article about conflict in the Middle East.

Friedman explains "globalization" by recounting stories of his actual experiences in interfacing with many of the global movers and shakers. He proposes that "globalization is not simply a trend or fad but is, rather, an international system. It is the system that has replaced the old Cold War system, and, like that Cold War System, globalization has its own rules and logic that today directly or indirectly influence the politics, environment, geopolitics and economics of virtually every country in the world."

The "Big Idea" in The Lexus and the Olive Tree is found on page 232 where Friedman explains that: "if you can't see the world, and you can't see the interactions that are shaping the world, you surely cannot strategize about the world." He states that "you need a strategy for how to choose prosperity for your country or company."

The book puts forward a capitalist peace theory called the Golden Arches Theory of Conflict Prevention:

No two countries that both had McDonald's had fought a war against each other since each got its McDonald's.

He supported that observation, as a theory, by stating that when a country has reached an economic development where it has a middle class strong enough to support a McDonald's network, it would become a "McDonald's country", and will not be interested in fighting wars anymore.

Friedman's point is that due to globalization, countries that have made strong economic ties with one another have too much to lose to ever go to war with one another. Regardless of whether the statement is true, the conclusions to be drawn are unclear. The global expansion of McDonald's restaurants is a relatively recent phenomenon when put into the context of the history of warfare, and, with a few notable exceptions, has proceeded into relatively stable markets.


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