Which of the following factors increases pressures for cost reductions?
a) Differences in distribution channels between home and foreign markets are modest.
b) Increasing national wealth is expanding the market.
c) The product has great transportation nee

e) Differentiation on nonprice factors is difficult, and price is the main competitive weapon in a market. Cost reductions are often necessary in order to remain competitive when price is the main differentiator in the market, as companies must rely on strategic cost reductions and efficiencies in order to remain competitive. By making their operations more efficient, companies can reduce costs and maintain lower prices, which are the key to success in a market where nonprice factors are not easily differentiated.