Question

The production strategy of a firm using a global strategy would likely entail A. A narrow selection of models and styles with each model/style focused on identified international market niches. B. Locating plants on the basis of maximum competitive advantage—in countries where manufacturing costs can be kept low or close to major markets to economize on shipping costs or use of a few world-scale plants to capture maximum scale economies and experience curve effects, as most appropriate. C. Producing the various products at plants scattered around the world. D. Producing a broad product line (many models and varieties) so that buyers in each target national market would be able to select the item that best met their individual needs. E. Creating a different product lineup for each major area of the world (Europe, North American, Latin America, and the Asian Pacific).

Answer 1

Answer:

The correct answer is the option B: Locating plants on the basis of maximum competitive advantage, in countries where manufacturing costs can be kept low or close to major markets to economize on shipping costs or use of few world-scale plants to capture maximun scale economies and experience curve effects, as most appropiate.

Explanation:

To begin with, the concept known as "Global Strategy" in economics and business terms, refers to the type of method that a company uses in order to accomplish the global penetration of its product so that the sales of the business starts to rise and the profits increases as well. The major bases in this type of strategy are in the fact of finding the places where will be more opmital to produce due to the factors that will influece the production and the plant as a whole. Therefore that in order to succeded with this movement, the company will have to reach economies of scale in those places.