Because differentiation across countries can involve significant duplication and a lack of product standardization, it may reduce costs.

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Differentiation across countries typically involves customization of products to meet local preferences and requirements, leading to increased costs due to the need for additional research and development, production, marketing, and distribution efforts. It may also lead to a lack of standardization, making it difficult to achieve economies of scale and cost reductions through mass production and procurement.

Because Differentiation Across Countries Can Involve Significant Duplication and a Lack