A localization strategy is best adopted when an MNE is willing to give full attention to foreign market adaptation and there are minimal pressures to keep cost low.

Question

Quizplus · Accepted Answer

A localization strategy requires a company to adapt its products and services to meet local market demands, which may involve significant investments in research and development, marketing, and distribution. This approach is most effective when a company is willing to commit substantial resources to foreign market adaptation and is not overly concerned with cost minimization. A localization strategy involves adapting products or services to meet the specific needs and preferences of local markets. This can involve higher costs due to the need for research and development and customization, but can lead to higher customer satisfaction and market share. Therefore, it is best adopted when the MNE is willing to invest in foreign market adaptation without being constrained by cost pressures.

A Localization Strategy Is Best Adopted When an MNE Is