A firm following a multidomestic strategy
A) is highly efficient.
B) lacks local responsiveness.
C) faces a greater risk of intellectual property (IP) appropriation.
D) requires exposing explicit knowledge because products are manufactured locally.

Question

Quizplus · Accepted Answer

The risk of IP appropriation increases when companies follow a multidomestic strategy. Besides exposing codified knowledge embedded in products, as is the case with an international strategy, a multidomestic strategy also requires exposing tacit knowledge because products are manufactured locally.

A Firm Following a Multidomestic Strategy