When the pressure for local responsiveness is strong and the pressure for coordination is weak for multi-national corporations in an industry,the industry will tend to become
A) global.
B) consolidated.
C) multi-domestic.
D) risky.
E) indigenous.

Question

Quizplus · Accepted Answer

When the pressure for local responsiveness is strong and the pressure for coordination is weak, companies tend to adopt a multi-domestic strategy. In this approach, companies tailor their products and services to meet the specific needs of each local market, and they allow each subsidiary to operate autonomously. This results in a decentralized structure with significant differences among subsidiaries. Multi-national corporations operating in such an industry prioritize the customization of their products in each market, rather than achieving global standardization.

When the Pressure for Local Responsiveness Is Strong and the Pressure