Which of the following statements is true about firms pursuing a multidomestic business strategy?
A) There is a huge amount of data and control information flow between the home and subsidiary locations.
B) The knowledge transfer between subsidiaries is abundant.
C) They have standard offerings across markets and give preference to international business.
D) They are extremely flexible and responsive to the needs and demands of local markets.
E) They work in a centralized fashion and the home location exerts strong control on the subsidiaries.

Question

Quizplus · Accepted Answer

Firms pursuing a multidomestic business strategy are extremely flexible and responsive to the needs and demands of local markets. They customize their products and services to meet the unique demands of each local market. They also enjoy a high degree of autonomy, so they are better able to respond quickly and effectively to changes in local market conditions. Knowledge transfer between subsidiaries tends to be limited, as subsidiaries are focused on developing and implementing strategies that are relevant to their particular local market. There is typically less data and control information flow between home and subsidiary locations, as they operate relatively independently.

Which of the Following Statements Is True About Firms Pursuing