A main advantage of a global standardization strategy is that it:
A)Leverages low-cost advantages.
B)Maximizes local responsiveness.
C) Provides for significant local autonomy.
D) Engages in global learning and diffusion of innovations.

Question

A main advantage of a global standardization strategy is that it:
A)​Leverages low-cost advantages.
B)​Maximizes local responsiveness.
C) ​Provides for significant local autonomy.
D) ​Engages in global learning and diffusion of innovations.

Quizplus · Accepted Answer

A global standardization strategy allows a company to leverage low-cost advantages by producing standardized products that can be sold in multiple markets with minimal customization. This can lead to economies of scale and cost savings, which can make the company more competitive in the global marketplace. Maximizing local responsiveness (choice B) would require customization of products or services to meet the needs of specific local markets, which would be difficult to achieve with a standardization strategy. Providing significant local autonomy (choice C) could also hinder the ability to achieve cost savings through standardization. Engaging in global learning and diffusion of innovations (choice D) may be a secondary benefit of a global standardization strategy, but it is not the main advantage.

A Main Advantage of a Global Standardization Strategy Is That