After testing its products in foreign markets by pursuing an international strategy,GR Foods Inc.wants to expand by pursuing a multidomestic strategy.How will this most likely affect the company?
A) The company's operations will become more cost-efficient.
B) The company's exposure to exchange rate fluctuations will reduce.
C) The company will be able to reap greater benefits from economies of scale.
D) The company will be exposed to a lower risk of intellectual property appropriation.

Question

Quizplus · Accepted Answer

The company's exposure to exchange rate fluctuations will reduce. Multinational enterprises (MNEs) following a multidomestic strategy, in contrast with an international strategy, face reduced exchange-rate exposure because the majority of the value creation takes place in the host-country business units, which tend to span all functions.

After Testing Its Products in Foreign Markets by Pursuing an International