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Globalization: The Middleman Takes Center Stage

November 28, 2011, 12:00 AM

What’s the Big Idea? 

Want to scare a book publisher, a record store owner, or even a doctor? Creep up behind her and shout: disintermediation! This is the term du jour for "cutting out the middleman," which happens any time a producer of something - a writer, a band, or a pharmaceutical company - can find a way to go direct to the consumer.  The Internet and the mass media are making this easier than ever, which is part of what prompted Thomas Friedman to predict dire times for middlemen in his bestseller, The World Is Flat.

Yet in other areas of the global economy, the middleman is more in demand than ever.  It’s a big, multilingual, multicultural world, after all. According to economist and author Daniel Altman, culture-bridging experts will thrive economically well into the foreseeable future.  As companies set up operations in new countries, they need bicultural middlemen – lawyers, fixers, and accountants among them – to smooth things over with the locals. Businesses are willing to pay generously to open doors to new markets.

There are other kinds of opportunities, too, for savvy importers of unique foreign products and services into markets that are ripe to receive them. For Altman, Roy Lee – the guy who brought films like The Ring to America – is the poster child for this new breed of global entrepreneur.

What’s the Significance?

One obvious conclusion is that an international background can be a tremendous advantage in the emerging global marketplace, and that anyone lucky enough to possess one would be wise to focus on smart ways of bridging the cultures they know best.

Another is that the activities of these middlemen can profit not only the middlemen themselves, but also the countries they connect, and the global economy as a whole. They are in high demand precisely because of the enormous economic potential their assistance can unlock. For post-crisis and long suffering nations such as Afghanistan, these opportunities can be a lifeline to independence from foreign aid, higher standards of living, and a self-sustaining future.


This post is part of the series Re-envision, sponsored by Toyota

Photo Credit: Shutterstock.com


Globalization: The Middlema...

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