Which of the following statements is true about firms pursuing a multidomestic business strategy?
A) There is a huge amount of data and control information flow between the home and subsidiary locations.
B) The knowledge transfer between subsidiaries is abundant.
C) They have standard offerings across markets and give preference to international business.
D) They use a loose federation of associated business units.
E) They work in a centralized fashion and the home location exerts strong control on the subsidiaries.

Question

Quizplus · Accepted Answer

Firms pursuing a multidomestic business strategy usually use a loose federation of associated business units, with each unit operating autonomously in the local market. They do not have standard offerings across markets and give preference to local responsiveness over global integration. There is typically less data and control information flowing between the home and subsidiary locations, with more emphasis on knowledge transfer between subsidiaries. The home location also exerts less control over the subsidiaries.

Which of the Following Statements Is True About Firms Pursuing