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Which of the following is a benefit of a multinational enterprise (MNE) pursuing a global-standardization strategy?

1) Increased economies of scale
2) Greater adaptability to local markets
3) Enhanced product differentiation
4) Improved coordination and control

User Isnullxbh
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Final answer:

Increased economies of scale is a benefit of a multinational enterprise (MNE) pursuing a global-standardization strategy. Option 1.

Step-by-step explanation:

A benefit of a multinational enterprise (MNE) pursuing a global-standardization strategy is increased economies of scale(1). This means that MNEs can produce goods and services in larger quantities, leading to lower production costs per unit. By producing on a global scale, MNEs can spread their fixed costs over a larger volume of output, resulting in cost savings.

For example, a multinational fast-food chain, such as McDonald's, can benefit from economies of scale by standardizing its menu, recipes, and processes across different countries. This allows them to bulk purchase ingredients and equipment, negotiate better deals with suppliers, and streamline their operations, leading to cost efficiencies.

Other options listed in the question, such as greater adaptability to local markets, enhanced product differentiation, and improved coordination and control, are not typically associated with a global-standardization strategy. These benefits are more commonly linked to a localization or customization strategy where products and marketing are tailored to specific local markets.

User TQCH
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