A Firm Should Use A(n) ________ Strategy When It Simultaneously

question 83

Multiple Choice

A firm should use a(n) ________ strategy when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness.

• A) global standardization
• B) localization
• C) international
• D) transnational
• E) nationalization

---

Definitions:

Hedonic Treadmill

A theory suggesting that people continually seek new levels of stimulation or material goods to maintain happiness, but generally return to a stable level of happiness despite major positive or negative changes.

Prospect Theory

Prospect theory is a behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Neoclassical Economics

An economic theory that focuses on how consumer demand and production costs influence price, output, and income distribution in markets.

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.