IntroductionThe characteristic of the global economy is not the flow of goods, but the flow of capital, people and information around the world. With globalization, time and space are no longer an obstacle to making deals around the world. Computer networks allow for instant transactions. Coupled with the increasing speed of transactions and global sourcing of all forms of resources and information, managers find it difficult to think globally and act locally (Rivette 2000). As markets become more open; As evidenced by free trade agreements between nations, more foreign firms are likely to enter domestic markets, thus increasing competition. Since firms operate in global markets, competitive moves in the home market can negatively affect the firm in another segment of the international market. Such increasing amounts and types of competition put pressure on firms to move into international markets in order to maintain their competitiveness in the areas in which they already operate (Atkinson 2000). Globalization requires intellectual capital as a source of comparative advantage, as highlighted by Lake Forest, Illinois-based WW Grainger. Basic informationW.W. Grainger, Inc., a globally minded Fortune 500 company, is the leading supplier of industrial products serving businesses and institutions across North America with approximately 600 locations. Grainger recently expanded into Mexico and China to source and sell its products. Grainger's decision to go global in this way reflects the intellectual capital the company retains. Knowledge has become the direct source of comparative advantage for selling its products. Grainger's path to success has included global expansion into Mexico and Canada. In recent years it has entered the Mexican and Canadian markets both to sell and source its products. It did this by establishing sophisticated distribution networks in both countries. In both countries, Grainger supplies customers with a wide variety of local and imported industrial products. Opportunity Statement As such, Grainger can continue to be successful in the foreseeable future by leveraging comparative advantages. Opening stores in Mexico, for example, is a function of Grainger's global expansion and sourcing activities to increase its market share, but also a comparative advantage for the company also in terms of increasing profit margins. By targeting new customers in new markets, it expands its market reach across North America. “By purchasing inventory locally, it arbitrates labor costs, reduces delivery distances, and provides customers with products tailored to their respective markets.