A problem with the international strategy is that over time, competitors inevitably emerge, and if managers do not take pro-active steps to reduce their cost structure, their company may be rapidly out-flanked by efficient global competitors.

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Quizplus · Accepted Answer

This is true as in the international market, there will always be new competitors emerging due to a variety of factors such as globalization and the ease of accessing new markets. Therefore, companies need to continuously work on reducing their cost structure to remain competitive. Failure to do so can quickly lead to being outperformed by more efficient global competitors.

A Problem with the International Strategy Is That Over Time