Would you believe me if I told you the world is going flat? Well, it is, but not necessarily in the literal sense you might assume. Recent advances in technology and communications have led to the rapid spread of globalization. This new level of connectivity acts as an equalizer between “industrial countries and emerging markets”. To put it bluntly, the gap between what we once thought were more developed nations and less efficient ones is closing at an incredible rate. To determine what it means and what effects it will have on managers of American multinationals we need to take a deeper look. What is making the world flat? Globalization is the main catalyst to continue the flat world process. However, the field can be narrowed more directly to telecommunications and outsourcing. Only recently have countries like India and China emerged as international economic powers. They understood that the free market system, which uses competition to stimulate growth, is essential to reducing poverty in a nation. Free enterprise ensures that “new ideas, technologies and best practices will flow easily into your country.” These new concepts, once put into practice, inevitably lead to new jobs and products. China and India have seen notable declines in their poverty levels in recent years, while bucking the trend; Non-globalized sub-Saharan Africa continues to become impoverished more than ever. It has become evident that countries must make these changes in order to compete in the world economy. In addition to technological improvements, occupational changes are essential to contribute to a flat world. The term outsourcing implies sharing management control and/or decision making with an external entity. We often hear about when a company outsources its workforce. It usually occurs when management decides it can hire cheaper and more efficient labor, often from another part of the world. This is why most of the clothing items we wear say “made in China” or “made in Taiwan”. A US-based company can pay the workers it supervises a much lower rate than they can pay in America. It doesn't seem like much, but in an age where the communication system is constantly improving, outsourcing is truly bringing the world closer.