Factors that increase the degree to which an industry is multidomestic include:
A) A need for standardized products
B) Fragmented industry with few competitors
C) Distribution channels unique to each country
D) The existence of economics of scale

Question

Quizplus · Accepted Answer

Multidomestic industries are those that have unique and different operating environments in each country they do business in. One of the key factors that increase the degree of multidomestic nature of such an industry is the existence of unique distribution channels in each country. This is because it requires customization of products, marketing, and sales strategies to meet local needs and preferences. The other options listed are factors that increase the degree of globalization in an industry.

Factors That Increase the Degree to Which an Industry Is