A Firm Facing Low Pressures for Cost Reductions and Low

question 36

Multiple Choice

A firm facing low pressures for cost reductions and low pressures for local responsiveness, is most likely to follow a(n) _____ strategy.

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

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Definitions:

Perfectly Competitive Industry

An industry in which no single producer can influence the market price of the product because the conditions of perfect competition are met.

Economic Resources

Assets or inputs that contribute to the production of economic goods, including land, labor, capital, and entrepreneurship.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue, capturing the true economic value created.

Opportunity Costs

A concept in economics that describes the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.