Because Differentiation Across Countries Can Involve Significant Duplication and a Lack
Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.
Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.
Pressures for cost reduction are minimal in industries where major competitors are based in low-cost locations,where there is persistent excess capacity,and where consumers are powerful and face low switching costs.
When consumer tastes and preferences differ significantly between countries,there is low pressure for local responsiveness.