Two factors tend to determine whether an industry will be primarily multi-domestic or primarily global.One of the factors is pressure for coordination within the MNCs operating in that industry.The other factor is

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Pressure for local responsiveness and pressure for coordination are the two main factors that determine whether an industry will be primarily multi-domestic or primarily global. Local responsiveness refers to the need for MNCs to adapt their products and services to the specific needs and preferences of individual country markets. Pressure for coordination arises when MNCs need to coordinate their activities across different countries to achieve economies of scale and scope, share knowledge and expertise, and transfer resources and capabilities among their subsidiaries. These two factors are in tension, and MNCs need to find a balance between them to be successful in different markets around the world.

Two Factors Tend to Determine Whether an Industry Will Be