The Primary Disadvantage of the Multidomestic Strategy and Worldwide Geographic

question 9

Multiple Choice

The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited:

• A) economies of scale.
• B) economies of scope.
• C) ability to meet local market needs.
• D) potential for global efficiency.

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors, which are reinvested in the business.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, not considered when calculating earnings per share or dividend distributions.