Globalization involves the internationalization of corporate governance mechanisms. We propose that internationalization of governance mechanisms is related to improved performance. For example, recruiting top managers from an international arena will enlarge the market for managerial labor, presumably putting more pressure on the present incumbents, and increase the probability of finding an adequate new manager. A test on a sample of listed Swedish corporations indicates that the proposition in general could be rejected. Our interpretation is 1.) that mechanisms with governance functions have several functions of which governance is but one, and 2.) that governance mechanisms cannot be analyzed in isolation, since they are included in a coherent corporate governance strategy.