Certified Production & Operations Manager (POM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The international operations strategy that involves low cost reductions and low local responsiveness is accurately identified as the international strategy. This approach is characterized by companies leveraging their core competencies and products developed in their home markets across various international markets with minimal adaptations. The primary focus is on maintaining a standardized product or service offering, which allows for cost efficiencies and economies of scale.

In this strategy, firms tend to prioritize centralized operations and management, leading to lower overall costs. Since the emphasis is not on local adaptation, responsiveness to specific market needs or cultural preferences in different regions is limited. This makes it advantageous for businesses that compete on cost rather than differentiating their products for local markets.

The other strategies mentioned involve varying degrees of cost management and responsiveness. For example, a global strategy seeks to achieve low cost through standardized operations but often does not prioritize local market needs. In contrast, a transnational strategy balances the need for local responsiveness with global efficiency, while a multidomestic strategy emphasizes high local responsiveness, often sacrificing cost efficiencies.