A global strategy embraces the theme "think global,act global," whereas a multidomestic strategy relies more on a "think global,act local" mentality.True or false? Explain.

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A global strategy indeed embraces the theme of "think global, act global." This approach involves a company applying the same business strategy across all countries in which it operates. The idea is to standardize products, services, and even marketing to achieve economies of scale and present a consistent brand image worldwide. Companies that employ a global strategy prioritize efficiency and integration across their operations, often centralizing decision-making at the headquarters.
On the other hand, a multidomestic strategy aligns more closely with the theme of "think local, act local." This strategy is characterized by a company tailoring its approach to fit the needs, tastes, and preferences of local markets. Businesses that adopt a multidomestic strategy often have decentralized decision-making, allowing local subsidiaries significant autonomy to develop products, services, and marketing campaigns that resonate with the local culture and consumer base. The emphasis is on differentiation and responsiveness to local market conditions rather than standardization.
Therefore, the correct themes for these strategies are:
- Global strategy: "Think global, act global."
- Multidomestic strategy: "Think local, act local."
The phrase "think global, act local" is often associated with transnational or international strategies, where a company seeks to combine the benefits of global coordination with the flexibility to adapt to local markets. However, this is not typically used to describe a multidomestic strategy.

A Global Strategy Embraces the Theme "Think Global,act Global," Whereas