Which of the following conditions is most favorable to reap gains from global scale economies?

Question

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Strong pressures for local responsiveness emerge when customer tastes and preferences differ significantly between countries. In such cases, a multinational's products and marketing message have to be customized to appeal to the tastes and preferences of local customers. This typically creates pressure to delegate production and marketing responsibilities and functions to a firm's overseas subsidiaries, reducing a firm's ability to realize global scale economies.

Which of the Following Conditions Is Most Favorable to Reap