A Localization Strategy Should Be Considered When

question 25

Multiple Choice

A localization strategy should be considered when

• A) it allows a firm to capture the cost reductions of mass-producing a standardized product.
• B) it reduces duplication of functions.
• C) it involves longer production runs.
• D) it makes sense if the value added by customization supports higher pricing.
• E) it substantially reduces local demand.

---

Definitions:

GDP Deflator

The GDP deflator is an economic metric that converts the current prices of all goods and services produced in an economy to constant prices, allowing for inflation adjusted comparisons.

Real GDP

The calculation of a nation's economic production taking into account adjustments for variations in prices and inflation, revealing the actual value of goods and services generated.

Percentage Change

A mathematical calculation that represents the degree of change over time as a proportion of the original value, often used to measure growth or decline.

GDP Deflator

A gauge for pricing of all new, native-produced, conclusive goods and services within an economy, applied to revise nominal GDP in order to compute real GDP.