The Main Drawback of a Multinational Strategy Is That It

question 84

Multiple Choice

The main drawback of a multinational strategy is that it does not allow a company to ________.

• A)exploit scale economies in product development or marketing
• B)closely monitor buyer preferences in each local market
• C)modify its products except for the most superficial features
• D)respond quickly and effectively to emerging buyer preferences

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Definitions:

Quantity Discounts

Price reductions based on the volume of purchase, incentivizing buyers to purchase larger amounts by offering lower per-unit prices at higher volumes.

Supply Chain Cost

Expenses incurred in the production and delivery of a product from raw materials acquisition to final product delivery, including production, storage, and transportation costs.

Inventory Holding Costs

Expenses associated with storing and maintaining unsold goods, including warehousing, insurance, and depreciation.

Obsolescence Cost

Costs incurred due to inventory or assets becoming outdated or no longer useful.