Why do so many global strategies fail--despite companies' powerful brands and other border-crossing advantages? Seduced by market size, the illusion of a borderless, "flat" world, and the allure of similarities, firms launch one-size-fits-all strategies.

But cross-border differences are larger than we often assume, explains Pankaj Ghemawat in Redefining Global Strategy. Most economic activity--including direct investment, tourism, and communication--happens locally, not internationally.

In this "semiglobalized" world, one-size-fits-all strategies don't stand a chance. Companies...