Implementing the Multidomestic Strategy Requires Decentralization

question 94

Multiple Choice

Implementing the multidomestic strategy requires decentralization

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

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Definitions:

Social Costs

The total cost to society, including both the private costs borne by producers and also any external costs to others not involved in the transaction.

Social Benefits

The aggregate advantage to society derived from the production or consumption of a product, encompassing both individual benefits and any additional external advantages.

Pay-per-view Movies

A service that allows consumers to pay for individual movies to watch rather than subscribing to a broad service offering.

Common Resource

A resource like air or water that is available to all but can be depleted by overuse.