What are two drawbacks of a "think local,act local" multidomestic strategy?
A) The especially high vulnerability to fluctuating exchange rates and the fact it can usually be defeated by companies employing cross-border coordination techniques.
B) The excessive vulnerability and exposure that exists to fluctuating exchange rates and the need to craft a separate strategy for each country market in which the company competes.
C) The hindering of a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and that it does not promote the building of a single unified competitive advantage in all country markets where a company competes.
D) The greater exposure to both increases in tariffs and restrictive trade barriers and the added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
E) Not being able to export products manufactured in one country to markets in other countries and the fact that the strategy is largely unsuitable for competing in the markets of emerging countries.
Correct Answer:
Verified
Q67: Which of the following does NOT accurately
Q74: What is a primary drawback of a
Q74: A multidomestic strategy represents:
A) a think-local,act-local approach
Q75: A global strategy is one in which
Q76: Multidomestic competition is best characterized as a
Q77: A global strategy allows for
A)the leading companies
Q78: A "think local,act local" multidomestic strategy works
Q81: A strategy that incorporates elements of both
Q82: Which of the following is the most
Q83: Companies that compete internationally can pursue competitive
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents