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The strategic foundations of the globalization hypothesis are based primarily on _____.

• product differentiation

• cost reduction

• superior customer service

• local responsiveness

Answer: cost reduction

Explanation:

The globalization hypothesis states that consumer desires and needs around the world are getting more and more homogenous.

Internationalization sweeps over national borders through technology and strong market influences reconstruct the global system. Cost reduction is a strategic foundations of the globalization hypothesis, because lower cost countries become more accesible for international trade and investment

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