A "Think-Local, Act-Local" Multidomestic Type of Strategy

question 26

Multiple Choice

A "think-local, act-local" multidomestic type of strategy

• A)is very risky, given fluctuating exchange rates and the propensity of foreign governments to impose tariffs on imported goods.
• B)is usually defeated by a "think-global, act-global" type of strategy.
• C)is more appealing when the country-to-country differences in buyer tastes, cultural traditions, and market conditions are diverse.
• D)is generally an inferior strategy when one or more foreign competitors are pursuing a global low-cost strategy.
• E)can defeat a global strategy if the "think-local, act-local" multicountry strategist concentrates its efforts exclusively in those foreign markets which have superior resources.

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Definitions:

T Account

A graphical representation of a ledger account used in accounting to depict the effects of transactions on account balances.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial data across different periods to identify trends and changes over time.

Balance Sheet

A report detailing a company's assets, liabilities, and equity owned by shareholders at a certain moment.

Income Statement

A report detailing a company's financial activities, including income, outgoings, and net earnings or deficits, over a particular period of time.