A firm is most likely to pursue a global standardization strategy when:

• A. the firm faces minimal competition in international markets
• B. the demand for products is largely universal across countries and cost pressures are high
• C. there are significant differences in consumer preferences between countries
• D. local responsiveness is more important than cost reduction

Answer: (B)

Verified step by step guidance

1. Understand the concept of a global standardization strategy: it involves offering a uniform product across different countries to achieve economies of scale and reduce costs.
2. Identify the conditions that favor global standardization: when consumer preferences are similar across countries (universal demand) and when cost pressures are significant, making cost reduction a priority.
3. Contrast this with conditions that favor other strategies, such as localization, which is preferred when there are significant differences in consumer preferences requiring adaptation.
4. Recognize that minimal competition in international markets does not necessarily drive global standardization; rather, it is the nature of demand and cost pressures that are key.
5. Conclude that the firm is most likely to pursue a global standardization strategy when the demand for products is largely universal across countries and cost pressures are high.