Question

For a Global Strategy, Group of answer choices products tend to be customized to the local market. strategic decisions are decentralized to be responsive to the needs of the local market. creates an advantage from economies of scale. none of the above.

Answer 1

Answer:

CREATES AN ADVANTAGE FROM ECONOMIES OF SCALE.

Explanation:

A well designed global strategy can help firms to gain competitive advantage. This competitive advantage can be gotten from economies of scale from access to more customers, markets, technology, and resources (efficiency of operations).

Economies of scale simply means that as a company grows and production units increase, a company will have a better chance to decrease its costs.

Competitive advantage is developed largely on a global basis meaning that the world is treated as one market and one source of supply with just local variation. Example is the Pepsi and Coca-Cola that sells in every country.

Therefore, a global strategy CREATES AN ADVANTAGE FROM ECONOMIES OF SCALE.