Economies of scale -  refers to the reductions in unit cost achieved by producing a large volume of a product. Economies of scale have a number of sources including the ability to spread fixed costs over a large volume, and the ability of large firms to employ increasingly specialized equipment or personnel

Which of the following is an infrastructure difference between countries that calls for product customization?

Difference in consumer electrical systems across continents

global standardization strategy - focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies. Their strategic goal is to pursue a low-cost strategy on a global scale. This strategy makes sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.

High transportation costs, the threat of tariff barriers, and potential problems with local marketing agents are disadvantages of - exporting

One disadvantage of licensing as a mode of entry into foreign markets is that - it can cause the firm to quickly lose control over its technology.

Hexagon Corporation, an American high-tech company, wants to set up operations in a foreign country to profit from its core competency in technological know-how. Therefore, the company needs to select an entry mode that offers protection of technology. Which of the following entry modes is most suitable for Hexagon Corporation? -  wholly owned subsidiary

An alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent is a - countertrade

Mass customization describes the ability of companies to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

the process of moving inventory from the point of consumption to the point of origin in supply chains for the purpose of recapturing value or proper disposal. - reverse logistics

The basic philosophy behind which of the following inventory systems is to economize on inventory holding costs by having materials arrive at a manufacturing plant at the right time to enter the production process and not before? - JIT

Which of the following factors favors concentrating production in a centralized location? - The product serves universal needs.

Japan, with a high population density and a large number of urban centers that grew up before the automobile, has a retail system with many small stores serving local neighborhoods and to which people frequently walk. However, none of these stores has a major share of the market. According to this information, which kind of a system does Japan have? - fragmented retail system

Other things being equal, the rate of new-product development seems to be greater in countries where -  competition among firms is intense.

In the Canadian company Hourglass Inc., all the important positions in the foreign subsidiaries are held by Canadian nationals. According to this information, what it the staffing policy pursued by Hourglass Inc.? -  ethnocentric

Which of the following is a disadvantage of adopting a geocentric staffing approach? - It can limit advancement opportunities for host-country nationals.