Which of the Following Is a Disadvantage for Firms Pursuing

question 97

Multiple Choice

Which of the following is a disadvantage for firms pursuing a multidomestic business strategy?

• A) limited knowledge transfer between individual subsidiaries
• B) exerting unnecessary control over subsidiaries
• C) lack of interest in obtaining additional knowledge about foreign operations
• D) inability to react quickly to local challenges and opportunities
• E) restriction of decision-making ability of subsidiaries

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Definitions:

Standard & Poor's 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

Stock Index

A statistical measure that shows changes in the stock market by tracking selected stocks' prices.

Price Appreciation

The increase in value of an asset or investment over time.

Portfolio

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).