In his new book, “Redefining Global Strategy,” Harvard and IESE (Barcelona) Professor Pankaj Ghemawat argues against the notion, most vociferously fronted by Thomas Friedman, that “The World Is Flat.” Ghemawat cautions that the belief in a “globalization apocalypse” — that is, a single global market in which all aspects of business proliferate without constraint — only hurts companies. Specifically, Ghemawat cites cultural, administrative, geographic, and economic differences that negatively affect cross-border business activities. For example, he pegs Google’s early failures in Russia to language difficulties (a form of cultural distance) — insufficient localization of how the core search product worked, and the underlying assumption that it didn’t matter (one size fits all). He peppers his arguments with detailed case histories ranging from Coca-Cola to Cemex. Rather than contrasting freestyle globalism with a traditional multinational approach, he posits “semiglobalization” as today’s un-level playing field.

Arguing against extreme perspectives of zero or complete integration, he states: “To take semiglobalization seriously is to infer that business decisions cannot be made on either a country-by- country or on the one-size-fits-all basis.” While noting that levels of cross-border integration are generally increasing and in many instances setting new records, he reminds us they still fall short of complete integration and will for decades to come. He goes on to present tools for strategic planners as they evaluate both the constraints and the opportunities provided by difference.

It seems to us at Common Sense Advisory that Ghemawat’s well-articulated thesis is beautifully anticipated and sustained in the very name of our favorite little industry — localization. Localization presumes a certain flatness, in that a given product may be prepped and sold in many or most markets worldwide. But the core of the localization value system is a recognition, exploration, and ultimately a finessing of difference. The output of the localization industry, like the word itself, asserts that a product must first be adapted, or localized, before reaching and succeeding in its target market.

By categorizing markets in terms of cultural, administrative, geographic, and economic differences (what he calls the CAGE Framework), Ghemawat provides a useful structure for measuring distance between markets. In his ADDING Value Scorecard, he then offers his formula for building a case for business expansion using adaptation, aggregation, and arbitrage strategies.

Whereas Friedman’s book appealed to a more general readership, we think this book will set the tone for insiders whose careers (and passions) stir to international business success. Two thumbs up.