In which of the following situations is employing a "think local,act local" multidomestic strategy highly questionable?
A) When a company desires to transfer competencies and resources across country boundaries and is striving to build a single,uniform competitive advantage worldwide
B) When there are significant country-to-country differences in customer preferences and buying habits industry is characterized by big economies of scale and strong experience curve effects
C) When the trade restrictions of host governments are diverse and complicated
D) When there are significant country-to-country differences in distribution channels and marketing methods
E) When host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards

Question

Quizplus · Accepted Answer

A multidomestic strategy that emphasizes "think local, act local" can hinder the transfer of competencies and resources across borders, and may not be effective in building a single, uniform competitive advantage worldwide. This is particularly true when a company desires to have a global presence and achieve economies of scale. In such cases, a global standardization strategy would be more appropriate.

In Which of the Following Situations Is Employing a "Think