Which of the following is a disadvantage of firms that pursue a global strategy?
A) lack of control over subsidiaries
B) limited knowledge transfer between individual subsidiaries
C) lack of interest in obtaining additional knowledge about foreign operations
D) inability to control decentralization
E) inability to react quickly to local challenges and opportunities

Question

Quizplus · Accepted Answer

Pursuing a global strategy can result in a lack of responsiveness to local challenges and opportunities, as decision-making is often centralized at the headquarters level. This can make it difficult for the firm to quickly adapt to local market conditions or customer preferences. A, B, C, and D are not necessarily disadvantages of pursuing a global strategy, as they can also apply to firms pursuing other types of strategies.

Which of the Following Is a Disadvantage of Firms That