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Some globalization strategies do not yield the expected results as evidenced by the?

1) acquiring of majority stake in Nissan Motor by Peugeot Citroen
2) leverage resulting from scale economies
3) leverage resulting from manufacturing
4) larger scale improvement of quality
5) unravelling of the DaimlerChrysler merger

User Tawana
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Final answer:

Not all globalization strategies are successful, with the DaimlerChrysler merger being an example of unexpected results. Globalization can foster competition and drive innovation and quality in industries such as the automobile sector. The automobile industry has seen significant gains from global trade, despite certain risks.

Step-by-step explanation:

Some globalization strategies do not yield the expected results as evidenced by certain notable cases. For instance, the acquisition of a majority stake in Nissan Motor by Peugeot Citroen, which never occurred, is not an example of unsuccessful globalization. However, the unraveling of the DaimlerChrysler merger is a clear case where the expected synergies and advantages of a global strategic alliance failed to materialize, leading to the split of the companies. Additionally, while strategies leveraging economies of scale and manufacturing often lead to competitive advantages and improvements in quality on a larger scale, globalization can also result in increased competition, which may negatively impact some players in the industry.

Global competition leads to innovation and better quality of products, as seen in the American automobile industry, which significantly improved due to the pressure from East Asian and European carmakers. The automobile industry is a prime example of how international trade and globalization strategies can reshape market dynamics by lowering concentration ratios within national borders and fostering global competition.

User Jrotello
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