The question is, can a multinational company be locally integrated outside its home base, or will it

remain consigned to being foreign, a visitor, seen as trying to maximize its own performance by
adapting its business to the local market and leaving at the first sign of distress? Such an alien visitor may
still win there, but only when the local market values it because it is foreign, or because it comes with
unique offerings that locals value, or both. Otherwise, in emerging markets, local companies will continue
to win. Globalization is clearly a double-edged sword. The advantages of being a transnational
corporation in emerging markets have declined dramatically in recent times. Smart local companies have
used the benefits of globalization to close gaps in technology, capital, and talent with their rivals from the
developed world. Although the average local competitor is weak, transnational corporations would do
well to rethink their strategies. After all, it often takes only one strong homegrown champion to shut a
multinational out of an emerging market. So, it is important for every company to know where they stand
in terms of competitive advantage when a new but huge multinational enters a local market.