Firms that pursue a(n)_______________ strategy focus on increasing profitability by reaping the cost reductions that come from experience curve effects and location economies.
A) multidomestic
B) multinational
C) international
D) global
E) transnational

Question

Quizplus · Accepted Answer

The strategy described in the question refers to a global strategy, as it focuses on achieving cost reductions through the benefits of experience curve effects and location economies. This involves standardizing products and services to achieve economies of scale and scope, and exploiting location advantages to minimize costs. A global strategy emphasizes efficiency and cost reduction, and allows firms to compete on a global scale.

Firms That Pursue A(n)_______________ Strategy Focus on Increasing Profitability by Reaping