Evidence suggests that, in general, using an international cost leadership strategy when exporting to developed countries has the most positive effect on firm performance, while using an international differentiation strategy with larger scale when exporting to emerging economies leads to the greatest amount of success.

Question

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International cost leadership is more effective in developed countries due to their price-sensitive consumers, while differentiation is more successful in emerging economies with growing middle classes seeking unique products.

Evidence Suggests That, in General, Using an International Cost Leadership