Pankaj Ghemawat makes an excellent case in this TED talk that the world isn't flat. I had helped with a journal article on the topic of globalization and had the opportunity to look into this area a bit. In fact, we had cited Ghemawat's work in this area because we found his analysis to be quite top notch. I, for one, am convinced that regional economics have limited levels of interaction and that the world isn't flat. To hear Ghemawat's perspective, you can start right about here.