In which of the following circumstances does a global standardization strategy make the most sense?
A) Global market standardization is not possible, and there are no significant economies of scale to be realized from centralizing global manufacturing.
B) Global market standardization is possible, but there are no significant economies of scale to be realized.
C) Global market standardization is not possible, but there are significant economies of scale to be realized from centralizing global manufacturing.
D) Consumer tastes and preferences differ among national markets, and economies of scale are insubstantial.
E) Global market standardization is possible, and there are significant economies of scale and location economies to be realized.

Question

Quizplus · Accepted Answer

A global standardization strategy makes the most sense when a company can achieve significant economies of scale and location economies by standardizing its products and processes across national markets. If global market standardization is possible and there are economies of scale and location economies to be realized, then a global standardization strategy can help a company reduce costs and improve efficiency. Other options, like A, B, C, and D, suggest that either global market standardization is not possible, or there are no significant economies of scale or location economies to be pursued, which makes a global standardization strategy less effective.

In Which of the Following Circumstances Does a Global Standardization