Which of the Following Statements Is True About Global Standardization

question 30

Multiple Choice

Which of the following statements is true about global standardization strategy?

• A) It emphasizes product customization to specifically meet customer needs.
• B) It involves the spreading of production, marketing, and research and development activities of companies to all the locations it operates in.
• C) It makes most sense when there are strong pressures for cost reductions.
• D) It makes most sense when there is maximum pressure for local responsiveness.
• E) It fails to focus on achieving location and scale economies.

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Definitions:

Production Possibilities

Different combinations of goods and services that an economy can produce efficiently with its available resources and technology.

Diminishing Returns

The principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Marginal Product

The increase in output resulting from a one-unit increase in the input of a production factor, holding all other inputs constant.

Marginal Product

The additional output resulting from one more unit of a given input, holding all other inputs constant.