When benefits from global integration are significant and local differences are minor, firms establish a global product division structure.

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Quizplus · Accepted Answer

This is because a global product division structure allows firms to integrate their resources and processes on a global scale, while still being able to adapt and customize their products to meet local market differences. This structure is particularly effective when there are significant benefits from global integration, such as economies of scale and scope, and when local differences are relatively minor and can be accommodated within the overall product design and development process.

When Benefits from Global Integration Are Significant and Local Differences