A Primary Drawback of a Global Strategy Is That It

question 87

Multiple Choice

A primary drawback of a global strategy is that it

• A)allows firms to address local needs as precisely as locally based rivals can.
• B)permits firms to be more responsive to changes in local market conditions, either in the form of new opportunities or competitive threats.
• C)provides for lower transportation costs and also may involve higher tariffs.
• D)involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise.
• E)raises production costs due to the greater variety of designs and components.

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