Imagine you work for a company that makes automobiles for international customer
ID: 344725 • Letter: I
Question
Imagine you work for a company that makes automobiles for international customer base. There is very little difference between the cars that you company sells in its primary markets in North America, Europe, and Asia. Your company has minimized operating costs by centralizing value-chain activities and emphasizing economies of scale. In this scenario, your company illustrates which phenomenon?
Question 5 options:
Local responsiveness
A global matrix structure
Multidomestic industry
Global integration
1)Local responsiveness
2)A global matrix structure
3)Multidomestic industry
4)Global integration
Explanation / Answer
Global integration is the process by which a company combines different activities around the world so that they operate using the same methods, etc. Global integration can involve process integration. Product standardization, unified procurement and supply chain activities etc. Therefore centralization of value chain activities and achieving economies of scale resulting in reduction in operating costs in multiple locations in Europe, America and USA is an example of “Global Integration “
ANSWER : 4 ) GLOBAL INTEGRATION
ANSWER : 4 ) GLOBAL INTEGRATION
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