A Localization Strategy Is Based on Which of the Following

question 32

Multiple Choice

A localization strategy is based on which of the following ideas?

• A) There is a convergence in the tastes of consumers in different nations of the world.
• B) There are substantial economies of scale to be realized from centralizing global production.
• C) Consumer tastes and preferences differ among national markets.
• D) There are cost advantages associated with manufacturing a standard product for global consumption.
• E) Competitive strategy should be centralized at the world head office.

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Definitions:

Utility

A measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Engel Curve

Curve relating the quantity of a good consumed to income.

Quantity Consumed

The total amount of a good or service that is used or purchased by consumers within a particular period of time.

Downward-Sloping

Describes a line or curve on a graph that shows a decrease in one variable in response to an increase in another.