Global competition suggests a drastically shortened life cycle for most products and no longer permits companies a polycentric, country-by-country approach to international business. If companies that have developed a new product do follow a country-by-country approach to foreign market entry over time, a globally oriented competitor will likely overcome their initial competitive advantages by blanketing the world markets with similar products in a shorter period of time. Indeed, it is imperative for companies to continuously create and acquire capabilities that would help generate a sustainable competitive advantage over their rivals. Increasingly, how to source globally has become a critical strategic decision that is influenced by the capabilities needed to compete.