What advantage does global integration primarily provide for businesses?

Global integration primarily provides businesses with the advantage of realizing aggregation benefits. This concept refers to the ability of companies to pool resources, operations, and efficiencies across multiple markets, leading to reduced costs and increased economies of scale. When businesses integrate their operations on a global scale, they can centralize their supply chains, streamline production processes, and leverage their capabilities across borders.

For example, a company that produces a product can manufacture it in one location where it is cost-efficient and then distribute it globally. This not only cuts down on costs but also enhances the overall efficiency of the business's operations. Additionally, global integration allows businesses to standardize products and services, ensuring consistent quality and branding across different markets, which can further strengthen market presence and competitiveness.

In contrast, increased local responsiveness focuses on tailoring products and services to meet the specific needs of local markets, which can often lead to higher costs due to fragmentation in operations. Developing unique regional strategies also emphasizes a localized approach, potentially sacrificing the benefits gained from integration. Simplifying corporate hierarchy is more about organizational structure than directly related to the advantages of global integration in terms of operational efficiencies and cost savings. Therefore, realizing aggregation benefits stands out as the primary advantage of global integration for businesses.