Global business is far from virtual. International companies invest heavily in bricks and mortar around the world. Instead of relying on arm's-length transactions or contracts, they place value at risk by investing capital in many different host countries. Although companies such as Nike outsource abroad but own no factories, many global businesses such as Toyota own facilities throughout the globe. Maximizing the value of the international business requires an effective global investment strategy, the fifth of the “G5 strategies.”

The global investment strategy provides another way to address the dual global challenge of meeting the need for global scale while catering to the diverse needs of local markets. Where necessary, the global firm turns to bricks and mortar, putting the necessary production or distribution capacity in the host country. These investments provide the capacity to serve global markets and meet local needs. Where political risk, high production costs, and the need for flexibility prevent this approach, the global firm responds with spot purchases and contracts with local suppliers and distributors. These transactions use the capacity of others to build scale and tailor offerings to local tastes. The middle ground between these approaches is to rely on global partners, applying alliances and JVs to share the costs and benefits of investment.

Investing internationally offers many attractive opportunities. Most notably, foreign production facilities benefit from proximity to natural resources, labor, and suppliers.