Differences in tastes and preferences
A) increase pressures for cost reductions.
B) reduce profit potential.
C) increase pressures for local responsiveness.
D) reduce pressures from the host government.
E) prevent a company from pursuing a licensing strategy.

Question

Quizplus · Accepted Answer

Differences in tastes and preferences increase the pressures for local responsiveness as companies need to adapt their products and marketing strategies to local preferences and cultures. This may involve incurring additional costs for research and development, marketing, and distribution. Failure to address local tastes can result in lower sales and market share. Therefore, companies with international operations must balance the needs for global integration and local responsiveness.

Differences in Tastes and Preferences