Question

In the quest to achieve competitive advantage in global markets, competitive pressures require that firms do what they can to _______ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Answer 1

Answer:

Lower

Explanation:

Diversifying in global markets refers to a firm offering it's products and services beyond the national boundaries, into new foreign markets, offering diverse and unrelated products.

Competitive advantage refers to gaining a competitive edge over the rivals which could be by using advanced technology or through an innovation which are firm specific and not available to the competitors.

In order to achieve competitive advantage, firms usually lower their per unit cost of production so as to increase the margin since increasing the price is not an alternative given the intense competition.

If a firm increases the price of it's goods and services in global market which is full of competitors, the firm won't be able to survive for long since in such a scenario global consumers would switch to competitors products available at a cheaper price.

Hence, the way out is to try and lower the per unit cost of products through efficient management and better deployment of available resources.