Which of the Following Is a Disadvantage of the Localization

question 105

Multiple Choice

Which of the following is a disadvantage of the localization strategy?

• A) Decrease in the value of the product in the local market
• B) Duplication of functions
• C) Inability to accommodate varying tastes and preferences in different markets
• D) Reduced customization

---

Definitions:

Break-even Point

The point at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as material or labor costs related to production levels.

Budgeted Salary

A predetermined amount of money allocated for salaries over a specific period, used for planning and controlling payroll expenses.

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.