Question

Cost Reductions and Local Responsiveness

Answer 1

Answer:

Determination of points that represent pressure for cost reduction and those that represent pressure for local responsiveness:

A. Pressure for cost reductions:

3. Outsourcing  

4. Universal Needs

6. Optimal Location

8. Experience Curve

B. Pressure for local responsiveness:

1. Differences in Infrastructure

2. Differences in Preferences

  5. Distribution Channels

7. Host Government Demands

Explanation:

Local responsiveness to international strategies arises from differences in customer preferences, differences in traditional practices and infrastructure, differences in distribution channels, and from host government demands.  The rest, including the need for outsourcing, meeting universal needs, finding optimal locations, and gaining from experience curves, originate from the entity's efforts to reduce costs of products and services for market competitiveness.