“…Second, they are a direct measure of the extent of linkages of a national industry with the outside world. They also share common antecedents with globalization-e.g., high economies of scale, a frequently mentioned antecedent of high industry globalization, will lead to centralization of value addition activities such as manufacturing (high globalization), in turn increasing the trade flow levels (Kotabe & Glenn, 1989;Morrison & Roth, 1992;Roth & Ricks, 1994). Trade flow levels do not include factors such as sharing/flow of intangible assets which are another characteristic of highly globalized industries.…”