Final answer:
GM's decision to create different versions of the Opel Corsa for Mexico and Brazil is an example of a regional product strategy, which allows the company to tailor products to specific regional demands while benefiting from economies of scale.
Step-by-step explanation:
When GM decided to build different versions of the Opel Corsa for Mexico and Brazil, this is an example of a regional product strategy. This approach tailors products to meet the specific tastes and demands of different regional markets, which can differ significantly from those in Europe where the Corsa was originally introduced.
International trade has led to a market where competition is no longer confined within national borders. Well-known car manufacturers like Toyota, Honda, and Volkswagen have brought competitive pressure to American carmakers like General Motors, Ford, and Chrysler. This pressure has resulted in more innovative and responsive approaches to car manufacturing, leading to improved quality in the cars produced.
By implementing a regional product strategy, carmakers like GM can leverage economies of scale while still providing variety and responding to local customer preferences in different markets around the world.