In the Context of Choosing an International Strategy, Identify a Difference

question 3

Multiple Choice

In the context of choosing an international strategy, identify a difference between a multidomestic strategy and a meganational strategy?

• A) Unlike a multidomestic strategy, a meganational strategy helps a company pursue a cost-leadership strategy at the local level.
• B) Unlike a multidomestic strategy, a meganational strategy simultaneously offers the benefits of both global and local advantages.
• C) Unlike a multidomestic strategy, a meganational strategy requires that companies exploit location economies.
• D) Unlike a multidomestic strategy, a meganational strategy requires that companies respond to differentiated needs of customers in each of the countries where they operate.

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Definitions:

Direct Labor Cost

Expenses associated with employees who directly contribute to the production of goods, such as wages for assembly-line workers.

Cost of Goods Manufactured

The sum of all expenses associated with the creation of finished goods within a given time frame, encompassing wages, raw materials, and indirect costs.

Adjusted Cost

The net cost of an asset after adjustments for improvements, depreciation, or damage, providing a more accurate reflection of its current value.

Income Statement

A financial report detailing a firm's income, costs, and earnings during a designated time frame.