Option d.) switching costs for consumers is the correct answer as consumer tastes and preferences, infrastructure, accepted business practices and distribution channels, and host government requirements create pressure on local capacity. At the very least, it could increase the pressure on companies to seek local responses.
Switching costs are the costs that consumers pay as a result of switching brands or products. Switching costs can be financial, psychological, effort-based, and time-based. Switching costs can be categorized into high switching costs and low switching costs.
To meet the pressure to go local, companies need to differentiate their products and marketing strategies by country to take into account these factors that tend to increase a company's cost structure.
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