Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?
A) Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world.
B) Academics feel that Levitt understates his case concerning global markets and the fall of multinational corporations.
C) Globalization, in the sense used by Levitt, is the rule rather in consumer goods markets and industrial markets.
D) Levitt's arguments hold true with respect to consumer goods markets but not for basic industrial products.
E) As observed by Levitt, in global markets, firms do not tailor their products to suit different countries.

Question

Quizplus · Accepted Answer

Levitt argues that modern transportation and communication technologies are facilitating a convergence of tastes and preferences among consumers in advanced countries of the world, leading to the emergence of a global market for standardized products. He suggests that companies should focus on producing standardized products for this global market rather than tailoring their products to suit different countries. Hence, option A is true. Option B is incorrect as Levitt's arguments have been criticized by many academics for oversimplifying the complexity of global markets. Option C is incorrect as Levitt's arguments hold primarily for consumer goods markets and not for industrial markets. Option D is incorrect as Levitt's arguments are applicable to both consumer goods and industrial products. Option E is incorrect as Levitt suggests that companies should produce standardized products for the global market, which implies that products are tailored for the global market rather than specific countries.

Which of the Following Is True of Theodore Levitt's Arguments