Which of the Following Is True of a Multidomestic Company

question 90

Multiple Choice

Which of the following is true of a multidomestic company?

• A) It pursues different strategies in each of its foreign markets.
• B) It emphasizes cultural similarities across countries and universal consumer needs and wants rather than differences.
• C) It standardizes marketing activities when there are cultural similarities and adapts them when the cultures are different.
• D) It views the world as one market and pits its resources against the competition in an integrated fashion.

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Definitions:

International Bonds

Bonds issued in a country by a non-domestic entity, allowing the issuer to access foreign capital.

Uncovered Interest Parity

A financial theory that posits that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Exchange Rate Risk

The potential for losses due to fluctuation in the exchange rate between two currencies in international transactions.

Foreign Exchange Market

A global marketplace for trading currencies against each other, determining the exchange rate values between different currencies.