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FIRST ANCHOR BOOKS EDITION, APRIL 2000
Copyright@1999, 2000 by Thomas L. Friedman
All rights reserved under International and Pan-American Copyright Conventions.
Published in the United States by Anchor Books, a division of Random House, Inc., New
York. Originally published in somewhat different font in hardcover in the United States
by Farrar, Straus and Giroux, LLC, New York, in 1999, and published here by
arrangement with Farrar, Straus and Giroux, LLC. Anchor Books and the Anchor
colophon are registered trademarks of Random House, Inc.
Grateful acknowledgment is made to the following for permission to reprint previously
published material: Excerpts from "Foreign Friends" (The Economist, Jan. 8, 2000).
Copyright @2000 The Economist Newspaper Group, Inc. Reprinted by permission.
Further reproduction prohibited. www.economist.com. Excerpt from the musical Ragtime,
lyrics by Lynn Ahrens. Copyright @ by Hillsdale Music, Inc., and Penn and Perseverance,
Inc. Reprinted by permission. Library of Congress Cataloging-in-Publication Data
Friedman, Thomas L. The Lexus and the olive tree / by Thomas L. Friedman -1st Anchor
Books ed. p. cm.
Originally published: New York: Farrar, Straus Giroux, @ 1999.
Includes bibliographical references and index. ISBN 0-385-49934-5
International economic relations. 2. Free trade. 3. Capitalism-Social aspects. 4.
Technological innovations--Economic aspects. 5. Technological innovations--Social
aspects. 6. Intercultural communication. 7. United States-Foreign economic relations.
8. Globalization I. Title.
Book design by Bob Bull www.anchorbooks.com Printed in Canada
10 9 8 7 6 5 4 3 2 1
THOMAS L. FRIEDMAN
The Lexus and the Olive Tree
Thomas L. Friedman is one of America`s leading interpreters of world affairs. Born in
Minneapolis in 1953, he was educated at Brandeis University and St. Anthony`s College,
Oxford. His first book, From Beirut to Jerusalem, won the National Book Award in 1988.
Mr. Friedman has also won two Pulitzer Prizes for his reporting for The New York Times
as bureau chief in Beirut and in Jerusalem. He lives in Bethesda, Maryland, with his wife,
Ann, and their daughters, Orly and Natalie.
Contents
Foreword to the Anchor Edition ix
Opening Scene: The World Is Ten Years Old xi
Part One: Seeing the System
1. The New System 3
2. Information Arbitrage 17
3. The Lexus and the Olive Tree 29
4. …And the Walls Came Tumbling Down 44
5. Microchip Immune Deficiency 73
6. The Golden Straitjacket 101
7. The Electronic Herd 112
Part Two: Plugging into the System
8. DOScapital 6.0 145
9. Globalution 167
10. Shapers, Adapters and Other New Ways of Thinking About Power 194
11. Buy Taiwan, Hold Italy, Sell France 212
12. The Golden Arches Theory of Conflict Prevention 248
13. Demolition Man 276
14. Winners Take All 306
Part Three: The Backlash Against the System
15. The Backlash 327
16. The Groundswell 348
Part Four: America and the System
17. Rational Exuberance 367
18. Revolution Is U.S. 379
19. If You Want to Speak to a Human Being, Press 1 406
20. There Is a Way Forward 434
Acknowledgments 477
Index 480
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