1.1 The cosmopolitan Corporation
In one sentence, the article is about (cultural) diversity and
distance, why companies should appreciate this instead of trying to
extinguish it, and how they should do that.
The main points he stated in his article are:
That cosmopolitan behaviour is less present than suggested;
To support this point Mr. Ghemawat comes up with several
facts: 90% of the people will never leave their native country,
2% of all phone calls are international and 95% of the news
people get is from domestic sources.
Cosmopolitan understanding is created in the wrong way;
He thinks that a proper understanding can be achieved with
the help of rooted maps. Because this overcomes the
challenge of becoming aware of the distance from a firm’s
home base or current market regarding to other countries.
Cosmopolitan strategies and organisations can be build;
To help with building cosmopolitan organisations, he suggests
2 different theories. Firstly, the AAA strategies (adaption,
aggregation and arbitrage). Secondly, the four levers he
identified: Conceptual frameworks, longer and deeper
immersion, projects and networks, assessment tools.
Ghemawat: Global strategy: AAA
Adaptation: Adjust to differences between countries
Aggregation: Overcome differences to achieve economies of scale
and scope
Arbitrage: Exploit differences: buy low in one country and sell high
in another
Ghemawat: advice for MNCs in World 3.0
Strategy: MNCs should emphasize adaptation more than
aggregation or arbitrage
Organization: Reduce or exploit external differences by managing
internal,
organizational distances
People: Develop a cosmopolitan mind-set
1.2 The Uppsala internationalization process model revisited
In one sentence, the article is about (cultural) diversity and
distance, why companies should appreciate this instead of trying to
extinguish it, and how they should do that.
The main points he stated in his article are:
That cosmopolitan behaviour is less present than suggested;
To support this point Mr. Ghemawat comes up with several
facts: 90% of the people will never leave their native country,
2% of all phone calls are international and 95% of the news
people get is from domestic sources.
Cosmopolitan understanding is created in the wrong way;
He thinks that a proper understanding can be achieved with
the help of rooted maps. Because this overcomes the
challenge of becoming aware of the distance from a firm’s
home base or current market regarding to other countries.
Cosmopolitan strategies and organisations can be build;
To help with building cosmopolitan organisations, he suggests
2 different theories. Firstly, the AAA strategies (adaption,
aggregation and arbitrage). Secondly, the four levers he
identified: Conceptual frameworks, longer and deeper
immersion, projects and networks, assessment tools.
Ghemawat: Global strategy: AAA
Adaptation: Adjust to differences between countries
Aggregation: Overcome differences to achieve economies of scale
and scope
Arbitrage: Exploit differences: buy low in one country and sell high
in another
Ghemawat: advice for MNCs in World 3.0
Strategy: MNCs should emphasize adaptation more than
aggregation or arbitrage
Organization: Reduce or exploit external differences by managing
internal,
organizational distances
People: Develop a cosmopolitan mind-set
1.2 The Uppsala internationalization process model revisited
