Traditionally, company globalization is measured in terms of its foreign sales as a percentage of total sales, but this can be confused with regionalization.

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This measure can be misleading. For example, consider a U.S. firm that has expanded its activities into Canada. Clearly, this initiative is qualitatively different from achieving the same sales volume in a distant country such as China. Similarly, if a Malaysian firm expands into Singapore or a German firm starts selling its products in Austria, this would represent an expansion into a geographically adjacent country. Such nearby countries would often share many common characteristics in terms of language, culture, infrastructure, and customer preferences. In other words, this is more a case of regionalization than globalization.

Traditionally, Company Globalization Is Measured in Terms of Its Foreign