Global strategy offers many advantages: It provides management with a
greater capability to respond to worldwide opportunities, increases opportunities
for cross-national learning and cross-fertilization of the firm’s knowledge base
among all the subsidiaries, and creates economies of scale, which results in lower
operational costs. Global strategy can also improve the quality of products and
processes—primarily by simplifying manufacturing and other processes. Highquality
products promote global brand recognition and give rise to consumer
preference and efficient international marketing programs.