Which strategy for MNEs entering foreign markets is best described as the development and distribution of standardized products worldwide to reap maximum benefits from low cost advantages?
A) Asset allocation
B) Localization strategy
C) Home replication strategy
D) Global standardization

Question

Quizplus · Accepted Answer

The strategy described in the question is global standardization. This strategy allows MNEs to take advantage of economies of scale and low-cost advantages by developing and distributing standardized products worldwide. This approach can be very effective in reducing costs, enhancing efficiency, and improving a firm's competitive position in foreign markets. Global standardization strategy involves developing and distributing standardized products worldwide to reap benefits from low-cost advantages. This approach allows MNEs to achieve economies of scale and reduce costs, while maintaining consistency in their products and branding across different markets. This strategy is particularly effective in industries where customers have similar needs and preferences worldwide, such as technology or fast-food chains.

Which Strategy for MNEs Entering Foreign Markets Is Best Described