Which of the following is a drawback of pursuing a multidomestic strategy?
A) The strategy allows for the lowest possible local responsiveness.
B) The strategy lowers the differentiation of a firm's product and service offerings.
C) The strategy exposes a firm to greater exchange rate fluctuation when compared to an international strategy.
D) The strategy is costly and inefficient because it requires the duplication of key business functions across several countries.

Question

Quizplus · Accepted Answer

A multidomestic strategy is costly and inefficient because it requires the duplication of key business functions across multiple countries. Each country unit tends to be highly autonomous, and the MNE is unable to reap economies of scale or learning across regions.

Which of the Following Is a Drawback of Pursuing a Multidomestic