This session begins with evidence that, contrary to recent claims, the world is not “flat” (nor flattening), and goes on to explore the strategic implications of deep, persistent differences in nations’ economic, political and social institutions. Participants learn about the evolution of global and national governance institutions intended to permit nations and the organizations operating within them attain the benefits of globalization in the face of domestic political pressures to secure a larger share of profits or control. The session also examines heterogeneous strategies pursued by multinational organizations seeking either to adapt to cross-national institutional differences or to exploit institutional idiosyncrasies to generate value. Learning objectives include the following.