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An American company wants to go into another country and do business. There are two generic approaches it can take--global standardization and localization.
a. If the firm's generic strategy at home is price leadership, which of the above approaches is it likely to be more comfortable with, in the foreign country?
b. Which of the two approaches is the new country likely to welcome more?
c. Separately, how could the U.S. company use the characteristics of a new country choice to help its price leadership position (the answer which, by the way, is often one of the motivations for companies to get involved in other countries)?
d. While on the subject, how could doing business in the foreign country help a company's economy of scale? (hint: think back to the two criteria for economy of scale)
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