Firms that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale, learning effects, and location economies.

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Firms that pursue a global standardization strategy, not an international strategy, focus on increasing profitability by reaping cost reductions from economies of scale, learning effects, and location economies. An international strategy typically involves taking products first produced for the domestic market and selling them internationally with minimal local customization.

Firms That Pursue an International Strategy Focus on Increasing Profitability