Question

In the wireless telecommunications industry, different technical standards are found in different parts of the world. A technical standard known as GSM is common in Europe, and an alternative standard, CDMA, is more common in the United States and parts of Asia. Equipment designed for GSM will not work on a CDMA network and vice versa. What kind of competitive pressure does this create for multinational companies in the industry?

Answer 1

Answer:

A varying infrastructure.

Explanation:

The competitive pressure it creates for multinational companies in the industry is one of difference in infrastructure because different technical standards are found in different parts of the world.

For instance, A technical standard known as Global Systems for Mobile (GSM) is common in Europe, and an alternative standard, Code Division Multiple Access (CDMA), is more common in the United States and parts of Asia.

Consequently, equipment designed for GSM will not work on a CDMA network and vice versa as a result of varying infrastructure, so companies would be innovative in order to improve on their products.