What Is a Primary Drawback of a Localized Multidomestic Strategy

question 108

Multiple Choice

What is a primary drawback of a localized multidomestic strategy?

• A)It hinders the use of cross-border coordination of a company's activities and increases a company's vulnerability to adverse shifts in currency exchange rates.
• B)It makes it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods.
• C)It makes it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions.
• D)It hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates.
• E)It is unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's business model to compete on the basis of low price.

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Definitions:

Materials

Refers to the substances or components that are used to manufacture or create a product.

First Processing Department

The initial stage or section in a manufacturing process where raw materials are first transformed into work-in-progress.

Total Cost Transferred

The combined cost of goods or services that is moved from one process or department to another within the same company.

First Processing Department

The initial stage or department in a manufacturing process where raw materials start their transformation into finished products.