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Carvo Fashions, a Leading Designer and Manufacturer of Scarfs and Stoles

Question 32

Multiple Choice

Carvo Fashions, a leading designer and manufacturer of scarfs and stoles, conducts a thorough study of the cultural and fashion trends of a nation before marketing its items. It incorporates local patterns in each of its items so that it matches the culture of that nation. In this scenario, which of the following statements is true of the multidomestic strategy that Carvo has chosen?


A) It helps the company pursue a cost-leadership strategy at the global level.
B) It helps the company pursue a differentiation strategy at the global level.
C) It requires that companies exploit location economies.
D) It achieves integration through decisions made mostly by those in the headquarters.

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