Lec 7

Question 1

When firms develop their international strategy they face two conflicting
pressures:

Answer 1

1. pressure to standardize and concentrate
   configuration- GLOBAL INTEGRATION
2. pressure to disperse configuration and
   adapt coordination.- LOCAL RESPONSIVENESS

Question 2

What drives global integration?

Answer 2

• Globalization helps standardize consumer preferences
• Markets are globalizing and they generate high-touch products
• Technology enables mass standardization
• Economies of scale render products cheaper to produce