Two drawbacks of a "think local,act local" multidomestic strategy are
A) that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-border coordination techniques.
B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.
C) hindering 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 not promoting the building of a single, unified competitive advantage in all country markets where a company competes.
D) greater exposure to both increases in tariffs and restrictive trade barriers and 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 being largely unsuitable for competing in the markets of emerging countries.
Correct Answer:
Verified
Q51: Which of the following is the most
Q53: Which of the following is the most
Q54: Strategic alliances between domestic and foreign firms
Q56: The approach of a firm using a
Q57: A "think global,act global" approach to crafting
Q58: In which of the following situations is
Q69: When a company operates in the markets
Q78: A "think local,act local" multidomestic strategy works
Q80: The essential difference between a "think global,act
Q90: The competitive strategy of a firm pursuing
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