The two factors that tend to determine whether an industry will be primarily multidomestic or primarily global are (1) the pressure for coordination within the MNCs operating in that industry and (2)
A) the pressure for local responsiveness on the part of individual country markets.
B) the power of the local country governments to restrict MNC actions.
C) the need for brand management in the various MNCs operating within that industry.
D) the importance of differentiating with integrating mechanisms in regional cooperatives.
E) the likelihood of terrorist activity impacting that industry.

Question

Quizplus · Accepted Answer

The pressure for local responsiveness on the part of individual country markets is the second factor that tends to determine whether an industry will be primarily multidomestic or primarily global. This refers to the degree to which MNCs must customize their products or services to meet local market demands and preferences, which can require significant coordination and effort within the MNC.

The Two Factors That Tend to Determine Whether an Industry