A localization strategy involves some duplication of functions and sma

QUESTION

A localization strategy involves some duplication of functions and smaller production runs.

Indicate whether the statement is true or false.

ANSWER

TRUE
Since customization, as a result of a localization strategy, involves some duplication of functions and smaller production runs, it limits the ability of the firm to capture the cost reductions associated with mass-producing a standardized product for global consumption.