A multinational that allows a subsidiary a high degree of independence and provides tailored products or services for the local market they serve is using a __________ strategy.

Question

Quizplus · Accepted Answer

The multinational is using a multidomestic strategy, which emphasizes the importance of local responsiveness and allows subsidiaries to have a high degree of independence to provide tailored products or services for the local market they serve. The other options are not as applicable because they do not place as much emphasis on local customization or subsidiary autonomy. For example, a global strategy seeks to standardize products and services across multiple markets, while a transnational strategy attempts to balance global standardization and local customization. A regional strategy focuses on a specific region rather than individual markets, and an international strategy operates in multiple countries but does not prioritize local responsiveness.

A Multinational That Allows a Subsidiary a High Degree of Independence