According to Ghemawat, how should the world be viewed in terms of business?

The perspective of viewing the world as a multi-domestic world aligns well with Ghemawat's insights on international business strategy. This view acknowledges that while globalization has made many markets more accessible, significant differences still exist across countries and regions. Operating effectively in international markets requires businesses to adapt their strategies to local contexts, including cultural, legal, and economic factors.

Ghemawat introduces the concept of "AAA" strategies—adaptation, aggregation, and arbitrage. In a multi-domestic strategy, companies focus on local responsiveness, tailoring their products and services to meet the specific needs and preferences of consumers in each market. This contrasts with the notion of a homogenous market, which assumes that a single global strategy can be applied across all regions without much modification. Viewing the world as a globalized economy may overlook the necessary local adaptations, and considering it merely a network of interconnected firms does not fully capture the complexity of varying market dynamics encountered globally.

Thus, understanding the world through the multi-domestic lens emphasizes the importance of local adaptations in a global business environment, highlighting that companies must navigate and accommodate these differences rather than applying a uniform approach across diverse markets.