Activity #3

Explain the statement: the greater the level of standardization—both within and across
markets—the greater the possible level of global efficiency.

This statement determines the efficiency of an entity’s standardization of operation and

production system through the integration of global efficiency as provided by stability of
the domestic operations. Moreover, it is very important for a company penetrating
international borders or international markets to have a high level of product
standardization in their local markets because this is a necessary factor that will
determine how they should market their product, what costs should they include based
on the economic standpoint of the proposed market, and also this will include the costs
of direct labor, lower raw materials availability, and the manufacturing expenses that
should be taken into consideration.