Implementing the Multidomestic Strategy Requires Decentralization To

question 131

Multiple Choice

Implementing the multidomestic strategy requires decentralization to:

• A) facilitate the tailoring of products to the demand in local markets.
• B) develop economies of scale.
• C) achieve economies of scope.
• D) reduce bureaucracy and speed up decision making.

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Definitions:

Liability of Foreignness

The inherent disadvantages that foreign firms experience in host countries due to their non-native status.

Licensing Agreements

Contracts in which one party (the licensor) permits another party (the licensee) to use rights to intellectual property, technology, or product lines.

Intellectual Property

Legal rights that result from intellectual activity in industrial, scientific, literary, and artistic fields, granting the creator exclusive rights to their work.

Licensing

Permission to use another company’s trademarks, patents, copyrights, or expertise.