“…The economic environment of the host country impacts the firm's cost structure, as it affects the cost of raw materials, labor, and allied resources needed to run local manufacturing operations (Samli, Wills, and Jacobs, 1993). A standardized strategy is more likely when the prevailing economic conditions in target markets are similar (Sriram and Gopalakrishna, 1991). The importance of economic conditions is also reflected in prior studies aimed at developing clusters of nations that share, inter alia, economic similarity as the basis for using standardized programs (e.g., Sethi, 1971;Day, Fox, and Huszagh, 1988 …”