Use of a straight extension marketing strategy usually results in economies of scale in production and marketing.

Question

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A straight extension marketing strategy, where a company uses the same product and marketing strategy in a foreign market as it does in its home market, can lead to economies of scale in production and marketing. This is because the company can produce and market its products in larger quantities without having to customize or change them for different markets, leading to lower costs per unit.

Use of a Straight Extension Marketing Strategy Usually Results in Economies