Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by __________.
A) flexibility in adjusting to local laws and customs
B) decreased duplication of inventories which are often involved in having multiple plants producing similar products
C) decreased shipping and transportation costs inherent in local production
D) economies of scale gained through centralized production of standardized products

Question

Quizplus · Accepted Answer

A multidomestic strategy is one of decentralization, meaning more likelihood of local production. One benefit of this is reduced shipping and transportation costs.

Elements of a Multidomestic Strategy May Facilitate the Competitive Advantage