All of the following are limitations of a multidomestic strategy, except
A) less ability to realize cost savings through scale economies.
B) greater difficulty in transferring knowledge across countries.
C) single locations may lead to higher tariffs and transportation costs.
D) may lead to 'over-adaptation' as conditions change.

Question

Quizplus · Accepted Answer

A multidomestic strategy involves customizing products and marketing strategies to specific national conditions, which can lead to greater local responsiveness. This strategy does not inherently involve concentrating operations in single locations, which would lead to higher tariffs and transportation costs; that issue is more associated with global or transnational strategies that centralize production to exploit scale economies.

All of the Following Are Limitations of a Multidomestic Strategy