With globalization a reality, companies no longer have a choice about whether to do business across borders. But it contains hidden risks—and firms need strategies and tactics for recognizing and managing those risks. In Global Edge, Joel Kurtzman and Glenn Yago offer two breakthrough tools for better managing the hard-to-see perils of going global.

Their CLEAR framework explains the specific—and potentially expensive—challenges businesses face overseas: corruption, the legal system, enforcement policy, accounting standards and governance, and regulatory developments. And the Opacity Index (a proprietary tool updated online for readers) measures how countries are ranked relative to each CLEAR factor, so companies can balance their exposure.

Drawing on a decade of fieldwork with companies and governments, the authors present a new way to anticipate, analyze, and manage hidden global business risks. In an age when a systematic understanding of global risks is still in its infancy, this insightful and practical guide takes the subject from the realm of academic interest and plants it squarely in management circles.