A number of factors exist that could influence a firm's decision to offer a global product in the international marketplace. Some of them are as follows :
Economies of Scale in production : With one production source standardization the product will achieve economics of long products runs while achieving decreasing costs per unit output or overall quantity needed to supply and satisfy the world market.
Economies of scale in marketing : Advertising sales literature and sales force training as well as other promo tools may vary slightly from country to country at least in language, but will be much similar and easier when the product is standardized, than when it is adopted for each national market. After each service inventory management will also be much easier here. All this translate to achievement of economies of scale in marketing.
Economies of scale in product research and development : When product is standardized in the world market centralised research and development cost will suffice with its attendant lower costs. While economies of scale are being achieved in this regard more effort could be directed in the search for new products.
Consumer loyalty : when product is uniform world over, the traveling consumer to any part of the globe could still get his preferred brand thereby retaining his loyalty.
Technological impact : Industrial products do possess critical technical specification and therefore uniform worldwide. While there could be social cultural differences ; physical and chemical processes remain the same. This explains why industrial products are more standardized than consumers products.
Export Oriented Firm : When a firms entry strategy into the foreign market is through exporting, the implication is that it sends standardized products around the world in the event of any foreign markets peculiarities, it may be deterred as a result of the long process of undergoing products modification serving the world market place from home production facilities.
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