The Lexus and the Olive Tree: Understanding Globalization 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 LS, and the desire to retain identity and traditions, symbolized by the olive tree.

The book puts forward a capitalist peace theory, first published as an opinion piece in The New York Times in December 1996, called the Golden Arches Theory of Conflict Prevention; although slightly tongue-in-cheek,[1] it states: No two countries that both have a McDonald's have ever fought a war against each other.

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.

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.

In 2005, Friedman said that he framed this theory in terms of McDonald's Golden Arches "with tongue slightly in cheek".