Annotated Bibliography Entry 2

The article "When You Shouldn't Go Global" from the Harvard Business Review states that while there are definite benefits in going global, many companies are "lulled by apparent safety as they move towards potential disaster" in foreign investment. This could happen because their global strategies are misguided, or because actually carrying out globalization is a lot harder than anticipated.

The review asks you to consider three questions when considering globalization for your company. The first one, "are there potential benefits for our company?" is to make sure there is a market for your product or service. The second, "do we have the necessary management skills?" asks you to be realistic about your companies capabilities in foreign expansion. The third, "will the costs outweigh the benefits?" talks about the cost of management versus the befits of an increased scale of business.

This article definitely takes the cautious and more pragmatic approach to looking at foreign economic relations for companies looking to globalize.

"When You Shouldn't Go Global." Harvard Business Review Dec. 2008: 72-73. Print.