Final answer:
International market segmentation is a challenging process, given the need to account for various cross-national differences. It allows companies to effectively compete on a global scale, reaping economies of scale and enhancing competition and variety for customers.
Step-by-step explanation:
Which statement best characterizes international market segmentation? The answer is that it is a challenging process to complete. International market segmentation involves considering a variety of factors that can differ significantly across borders, such as cultural, economic, legal, and social differences. This complexity contrasts with domestic market segmentation, which typically deals with a more homogenous population within a single nation.
An advantage of economies of scale is seen when large companies can lower average production costs and compete across international borders, enhancing the benefits of competition and variety for customers. This competitive environment encourages innovation and can lead to the production of better products, as seen with the example of the U.S. automobile market facing competition from international carmakers.
Thus, international market segmentation is not only crucial for identifying the distinct preferences and needs of customers in different countries but also for enabling companies to operate efficiently and competitively in the global marketplace.