Globalize to tap selective advantages in other nations. In search of “global” strategies, many companies today abandon their home diamond. To be sure, adopting a global perspective is important to creating competitive advantage. But relying on foreign activities that supplant domestic capabilities is always a second-best solution. Innovating to offset local factor disadvantages is better than outsourcing; developing domestic suppliers and buyers is better than relying solely on foreign ones. Unless the critical underpinnings of competitiveness are present at home, companies will not sustain competitive advantage in the long run. The aim should be to upgrade home-base capabilities so that foreign activities are selective and supplemental only to over-all competitive advantage.