A primary drawback of a global strategy is that it
A)allows firms to address local needs as precisely as locally based rivals can.
B)permits firms to be more responsive to changes in local market conditions, either in the form of new opportunities or competitive threats.
C)provides for lower transportation costs and also may involve higher tariffs.
D)involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise.
E)raises production costs due to the greater variety of designs and components.

Question

Quizplus · Accepted Answer

A primary drawback of a global strategy is that it involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise. While global strategy allows for economies of scale and uniformity in brand image, it also requires significant coordination among various global functions and often entails substantial legal and cultural challenges.

A Primary Drawback of a Global Strategy Is That It