Which of the following is a drawback faced by multinational enterprises (MNEs)pursuing an international strategy?
A) They cannot leverage their home-based core competencies in foreign markets.
B) They are highly affected by exchange rate fluctuations.
C) They have to be highly responsive to local needs and preferences.
D) They cannot reap the benefits of economies of scale due to their highly customized products.

Question

Quizplus · Accepted Answer

MNEs following an international strategy are highly affected by exchange rate fluctuations. An international strategy is essentially a strategy in which a firm sells the same products or services in both domestic and foreign markets.

Which of the Following Is a Drawback Faced by Multinational