Which of the following statements regarding multidomestic and global competition is false?
A) In global competition,rivals vie for worldwide market leadership and the leading competitors compete head to head in the markets of many different countries.
B) In globally competitive industries,a company's competitive position in one country both affects and is affected by its position in other countries.
C) One of the features of multidomestic competition is there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets.
D) With multidomestic competition,the competitive contest is localized,with rivals battling for national market leadership;moreover,winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries.
E) In global competition,the size of a firm's worldwide competitive advantage (or disadvantage)equals the sum of the competitive advantages (or disadvantages)it has in each country market where it competes.

Question

Quizplus · Accepted Answer

This statement is false. The statement is actually describing the concept of multidomestic competition, not global competition. In global competition, a company's worldwide competitive advantage (or disadvantage) is not simply the sum of its competitive advantages (or disadvantages) in each country market. Instead, a company's global competitive advantage is affected by factors such as its ability to leverage its resources and capabilities across multiple countries and its ability to create synergies among its various country operations.

Which of the Following Statements Regarding Multidomestic and Global Competition