Global strategy refers to the determination of the long-term goals and objectives, the allocation of the resources, and the adoption of courses of action in seeking competitive advantage when competing around the world.

Companies primarily confront two sets of pressures in the global context: cost reduction and local responsiveness. The framework that considers these two sets of pressure is called the global integration-local responsiveness framework which indicates: cost pressure often require global integration and local responsiveness press companies to adapt locally. In both domestic and international competition, pressures for cost reductions are almost universal. What is unique in international competition is the pressure for local responsiveness, which is reflected in different consumer preferences and host country demands. Consumer preferences vary extremely around the world