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➙ One of the main business justifications for a regional association is that it enables firms from member states to work in a bigger marketplace, thereby enhancing their ability to withstand more robust global competition. The problem is that many leading MNEs are more regional than global in terms of their outlook. The challenge for managers is to avoid the temptation of developing strategies that will prepare their company only for regional rivals, ignoring the benchmarks set by companies strategizing on a more global plane. The feasibility of this choice depends on whether the world is going to start to converge in terms of consumers’ purchasing power and the international distribution of wealth.


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