Marc Works Inc.,a reputed brand for fine writing instruments,is implementing an international strategy in its firms.Torque Inc.,a laptop brand,is pursuing a global-standardization strategy in its firms.Which of the following statements most likely holds true in this scenario?
A) While Marc Works Inc.'s competitive advantage lies in its high local responsiveness, Torque Inc. will lack such capabilities.
B) Torque Inc. focuses more on cost-reductions when compared to Marc Works Inc.
C) Torque Inc.'s business functions are highly centralized, whereas Marc Works Inc. organizes its activities worldwide.
D) Torque Inc. is exposed to greater risks of exchange rate fluctuations.

Question

Quizplus · Accepted Answer

Torque Inc. most likely focuses more on cost-reductions when compared to Marc Works Inc. The global-standardization strategy arises out of the combination of high pressure for cost-reductions and low pressure for local responsiveness. An international strategy is advantageous when the multinational enterprise MNE faces low pressures for both local responsiveness and cost-reductions.