Food Works Inc.is a multinational fast-food chain that follows a multidomestic strategy.Which of the following statements most likely holds true for the company?
A) The company's competitive advantage lies in leveraging its home-based core competencies in foreign markets.
B) Each country unit owned by the company will tend to be highly autonomous.
C) Majority of the value creation for the company will take place in its home country.
D) The company will not face any operational inefficiency as the key business functions do not have to be duplicated.

Question

Quizplus · Accepted Answer

The statement that most likely holds true for Food Works Inc. is that each country unit owned by the company will tend to be highly autonomous. For firms following a multidomestic strategy, each country unit will tend to be highly autonomous, and the MNE will be unable to reap economies of scale or learning across regions.