Final answer:
Global strategy is not solely based on price competition; it is a comprehensive plan that includes various components such as product customization, branding, efficiency, and compliance with international trade regulations. The complexities of the global market require a multifaceted approach to maintain competitiveness.
Step-by-step explanation:
The statement that global strategy is an integrated strategy based primarily on price competition is false. Global strategy involves a comprehensive plan for conducting business across borders that includes not only competitive pricing but also elements such as customized products for different markets, global branding, production efficiency, and other competitive tactics.
The forces of globalization and advancements in communications and information technology have led to heightened competition from various regions and countries. This has caused businesses to adopt strategies that capitalize on large-scale production to lower costs, yet companies also focus on innovation, quality, and other differentiating factors beyond just price.
Furthermore, real-world markets rarely feature perfect competition, and government policies often play a role in how businesses operate on a global scale. A global strategy must therefore incorporate various dimensions to successfully navigate the complex international market environment.
Important Aspects of Global Strategy
Customized products and services
Cross-cultural marketing and branding
Efficiency in operations and supply chain management
Strategic partnerships and alliances
Adherence to international trade and regulations