Impact of Internationalisation
Business Management: IB Diploma, topic 1.6.9
Cost Reduction and Local Responsiveness
When a business is assessing its pressures for cost reduction and local responsiveness, it must consider several factors:
Local responsiveness
- If customer requirements differ significantly in different countries, local responsiveness pressure is high.
Cost reduction
- If the business competes based on its efficiency and therefore requires, for example, economies of scale, to operate competitively, there is pressure for cost reduction.
Test yourself on Impact of Internationalisation
Which of the following is true if customer requirements differ significantly in different countries?