Host govermnent demands generally:
A)increase pressures for local responsiveness.
B)decrease pressures for cost reductions.
C)do not encompass local content rules.
D)compel companies to abandon localization strategies.
E)impede a company's ability to differentiate its product offering across national borders.

Question

Quizplus · Accepted Answer

Host government demands generally increase pressures for local responsiveness, as governments may expect and require companies to adapt their products and strategies to local economic, social, and cultural conditions. This can include localization of production, marketing, and even product design.

Answer: B
 Host government demands generally do not decrease pressures for cost reductions, as companies are still expected to operate efficiently and with competitive pricing. However, government regulations, taxes, and other factors can increase costs, which may make it challenging for firms to balance cost control with other demands such as local responsiveness.

Answer: E
 Host government demands can impede a company's ability to differentiate its product offering across national borders, as regulations and restrictions may limit the types of products or services that can be marketed or sold in certain countries. This can make it difficult for firms to maintain a consistent global brand or product line, and may require them to create specialized products or services for each local market.

Host Govermnent Demands Generally